AIV - Earnings call transcript Q4 2019 | Apartment Investment and Management Company

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Operator

Good day. And welcome to the Aimco Fourth Quarter 2019 Earnings Conference Call. All participants will be in listen only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded.

to President conference and like Cohn, to now Vice Executive General would turn over the Lisa I Counsel. Please go ahead.

Lisa Cohn

Thank day. good you, and

be this from uncertainty, projections our results looking today. on During statements found are discussed future forward in make certain These what of call, based risks may which to are be and year statements expectations. Actual management's description to differ SEC related we including may filings. subject materially XXXX a and judgment, conference can

We'll designed to such in These comparable also published is financial AFFO as release Aimco's measures, measures earnings that on discuss certain and non-GAAP Web part and FFO. full of the GAAP the are supplemental information reconciled the are most site.

Considine, Executive be and Keith Terry CFO. Property Beldin, which will and Prepared Other in follow charge Vice of Paul of come our Vice present our Wes in of management remarks prepared Kimmel, will Powell, Executive question-and-answer remarks. charge our our session, available members Operations; during President, from CEO; President, and Chairman Redevelopment; today are

to I Considine. now call Terry the turn Terry? will

Terry Considine

for Thank detailed Thank even for for published interest energized morning of Aimco. to you, in I'm more while these good in and Aimco a year prospects yesterday in XXXX we by I'm you the Last And beyond. was earnings Aimco results, your afternoon. this in as Lisa year and the by good you good call. all release bright delighted

and low has advantage real the operations, to finish property this redevelopments team. high long growth investments We property performing for and in a further non-recourse XXXX value we cohesive and thereafter. dated the estate, accretive meet fall, year expect forecast Aimco to and debt in world-class creating or cost XXXX made of beat with last prospects

sincere many XXXX offer next ahead our And Aimco for And this performance the year. see teammates that minutes, will accomplished we expectations I with very for and my Keith, what year. for thanks high Paul, last Wes In and in for detail and we the few XXXX. success solid

like to more over call I'd Kimmel, details, of For Operation. to Head the Keith? Property turn Keith

Keith Kimmel

pleased I'm solid operations. a had in Terry. to that fourth Thanks, report we quarter

focus operating and a selection relentless begins with customer service. customer exceptional on Our philosophy

refine playbook it to margin. lower this every pricing to new better and better continue and higher maximized We occupancy, execute and revenues, leads day, turnover, power, costs more

means the an this than in achieved quarter, fourth more of customer on out experience. improvement to Based point X.X our residents our resident the want service world-class a is XX.X%, with satisfaction longer, XX,XXX us indicative first to drive year-over-year. we've mark, surveys X to dedication on This that stars. customer lowest continued basis was live a of XXX time to This deliver turnover record leading

XX we result, Aimco XX.X% December. better and the basis XXXX throughout XX.X%, a daily XX.X% revenues than This an the was to best quarter. accelerated translated our occupancy X.X% for with top October up line quarter to in solid growth approach from As average points in

Boston. were Our top Denver, growth Washington Philadelphia, DC markets and with X.X% over

Los Angeles, Diego, the Miami. Solid all Atlanta, San over X.X% Area growth in Bay with were markets and

to of margins points XX growth with X% York, Finally, Seattle. New and basis Chicago were

were and turning in our XXXX, in in and the utilities. investments due Total year higher Now up the from for grew X.X% the Controllable by for flat by turn operating and offset fourth lower up were X.X% X.X% retention, expenses. and driven to to quarter improved quarter, marketing communities. taxes expenses expenses cost

XX.X%. and X.X% net margins a result, As grew operating income were quarter fourth

For margin the XX was a XX.X%, full our improvement basis point over year, XXXX.

X%; renewal basis better and up X.X%, XXXX. were lease were than up XX transacted new points Looking rates the at XX leases up rates quarter; points; which blended in rates same-store were lease basis

to some our basis XX.X%, XX blended XX occupancy than points year. renewals start January preliminary our X.X%, basis point X.X%; lease leases As last X%, are basis at up rates we XXXX; look XXXX all up daily a than new points improvement, XXX of average we're better plan; better solid achieving results, a towards up tracking while

our on We of outlook. are see revenue Finally, X%, Diego turning Philadelphia, Boston, another XXXX top to with markets year DC, San Seattle, solid Washington to X.X% Miami. planned growth and

Los team, for in in a We passion to dedication growth Bay for X.X% New to your to To X.X% innovation of our York X.X% area, operations and the expect and of X.X% thank Denver, Atlanta, you Angeles growth revenue Chicago. and serving residents. and the

Redevelopment. Wes of Wes? now Vice our Powell, to Executive the I'll call President turn over

Wes Powell

Keith. and I'll we'll be also for portfolio of can fourth XXXX. activity found quarter within discuss plans our and brief release. a on summary Thanks our management XXXX our provide Today, investment activities, Details

Aimco while trade from markets, Francisco, In reinvestment. San its properties capital upon geographic higher rate the the operating rent Miami, and Cambridge such investment. markets That for lower and and as such capital paired increase Denver, allocation margins to growth redeployed also suburban XXXX, of strategy, was with as growth our that lower without value creating continued re-allocating from produce improving number its Chicago to opportunity on

XXX earnings Of rates year, ahead the invested completed homes. projects, and XX% and fully growth In than in when up more past XXXX, million redevelopment leased these, are development shareholder or activity and renovated underwriting. lead This XX% was new at Aimco will During to currently leased. apartments of our value creates delivered year-over-year. $XXX accelerated are rental

expects million redevelopment Aimco $XXX XXXX. and value. annual to creating its million development increase to approximately investment between to shareholder $XXX in million, $XXX of and turning Now

whose million on annual During approximately at homes the revenues. in rate will stabilization run contribution $XX.X be year, to we plan construction complete XXX

are in construction when million stabilized, $XX XXXX. strong North occupied and contribute Point will and growth with through over And under they it's remain prospects. annual will market XXX of revenue Tower Flamingo homes some

redevelopment deep those and to pipeline and when the is a right. details during retained providing to plan forward new we year, time look Additionally, commence projects on the

sale of of outside flow superior accretive from operational both. Any our value of opportunities ideally leverage funded to the we investments new excellence, a on lower existing and communities Finally, creating redevelopment result seek portfolio free with as IRRs. cash forecasted we can will neutral be earn a where will continue basis returns

And Paul constant call teammates continued pursuit and with I now my turn the Beldin, opportunities, to would over to all our Chief of value-creating for their thanks to Officer. hard of like work Financial Paul?

Paul Beldin

Thank comment you, recap and Today, give of to a Aimco's our results, on going details balance XXXX quick Wes. our I'm XXXX discuss provide sheet guidance, on dividend. XXXX

and better X.X% The basis Wes, of AFFO growth year by strong per being NOI same midpoint ago, expected at contributed to revenue our of the of of same-store than the by of of growth provided share XXXX reported beginning one driven investments XX points better the discussed by points guidance was XX than growth. basis store full year. the $X.XX year Keith First ahead accretive guidance

Looking three back, asset first it of July quarters the important by business. for is management the the XXXX that was to XXXX impacted recall year-over-year AFFO of Aimco's growth sale

With We've growth the continue grew the by to in us, strong AFFO XX%. dilution from the fourth sale XXXX. expect behind quarter

X.X%. from with expects growth and and between dilution is of a the midpoint, NOI AFFO representing by be contribution approximately from properties that of growth X.X% and X% and same-store to $X.XX $X.XX portfolio at our of our is to growth loan incremental or redevelopment Aimco communities, $X.XX $X.XX The per expected Aimco's growth $X.XX fund partnership sold $X.XX this approximately to share, development share between AFFO made from set the mezzanine $X.XX of owns $X.XX remaining to investments. the net offset due X% from primarily partner per

costs from our net contribution keep share following mind years. increase in another three are by to over as expected is redevelopment properties of $X.XX funding the consideration these Please stabilized development per communities $X.XX and the after

We store XXXX between expected same components X% store revenue of X.X%. Next growth. discuss I'd forecast like NOI to and the our same growth

contribute leasing resident and Our revenue earning XXXX expected are including dependent factors, growth. expectations to number XXX satisfaction retention upon from activities is revenue pace of XXXX XXXX and our following. quality, The percentages, rates. the basis a contribution based points lease lease The leasing is of activities growth to on

revenue X.X% basis basis rates Blended be to in points these to than to year-over-year achieved to factors We XXX expected to similar expect better or lease add the XXX XXXX. growth. points are

daily we improvement pace achieved than average point XX the occupancy at XXXX. full basis XXXX in a in the increase slower year, but to Over expect

January and is are not do know. not fully we what January by complete results yet encouraged While yet available, we're

January XXXX average up daily example, occupancy by For XX bps. was

same to expense store Turning growth.

points We focus than or no expenses expect less. service total controllable same basis for relentless Of X.X up has to operating expenses X.X%. stores of expense in expect these Aimco's growth and a XX in to resulted increase by controllable more customer decade. innovation on be we costs, operating

sold sheet, Now in turning the of proceeds communities, four net balance Aimco $XXX generating million. to quarter, our fourth

of by if transaction better January and delayed. to end increased we a turn, year Another expect but attractively delay the ratio remains $XXX million and tenths leverage year EBITDA this of were This priced. liquid sales deep, our three market pricing

Our $XXX sales approximately EBITDA turn. leverage still this leverage to of million EBITDA one by of ratio In to repay we be above and leverage to expect target to X.X, but we our XXXX, is by expect funded property temporary. reduce approximately

contribution NOI into more. incremental EBITDA Looking $XX ratio leverage reduce further or continued redevelopment growth and same we by and from store our expect to another million investments turn future, the to our

share, a XXXX, the dividend increase X% a quarterly strong expected over XXXX. Directors regular Finally, dividends and per for a XXXX of solid quarterly with after paid AFFO $X.XX growth declared Board in cash the of Aimco

your open questions. With call for over the up per in for question. limit will two it first I'll questions turn that, the Please time you we the queue. to now Rocco, to

Operator

Today's Nick [Operator ahead. Please from Instructions] question Thank of sir. go you, Citi. first comes Joseph

Nick Joseph

the the little you and I'm maybe when a sales, decision? wondering were more the get where we that you could to decision in asset on delay made color process if

Lisa Cohn

a the the execution and for in we looking We the in of best did of number properties we're in market last pricing. as just terms have year,

his lowest deep and finally year. we just group are looking liquid can keep and of think going couple Paul we this a people get have to we're contract those under we buyers markets broad remarks, the looking in to capital. cost and a and looking, for I pricing of get said we're And of have prepared lots So

Nick Joseph

thought to wasn't that what So essentially when it should you the initially Is be. you're took pricing them out market, you what just saying?

Lisa Cohn

price flows that and looking ebbs just have maximize we're we didn't things deals diligence. an sell moment, through go and due there at mean, happen and to have people and them I to

we had that opportunity the make so And to decision.

Nick Joseph

terms assume year? guidance in of does the the sales asset of what timing this And

Paul Beldin

Paul. is this Nick,

the expect of We sell of to range our at properties $XXX the course year. of throughout the million the midpoint

first second will the first early the We those sales will and through late quarter or proceed then remainder year. expect occur in

As we timing. we'll provide more contract with down, get more money hard under of these precise sales

Operator

And Bank of Shirley of Please our next Wu ahead. question today go comes from America.

Shirley Wu

your two before of City that in with and do So Center my to markets you've first you have question has Mid-Wilshire. higher supply highlighted

So you're concessions terms in market to terms expect started what portfolio? to or impact impact you of do velocity? of Have when you slower of feel really seeing that your the And bulk full of see in the now?

Keith Kimmel

add start to Shirley, supply wants then this some Paul is I'll more global and Keith. if insights.

portfolio, Korea town. where question around particular good supply Your of most positioned in and that Mid-Wilshire we we're about feel in that's there, coming really the actually

you we're better we're located, think in it, do about spot want be that going it's in the west and a where that? year so position we're a will that good add impactful we'll on And Wilshire, look particularly of to in we the eye strong that while we keep think but further feel to forward and part LA. in and our it Paul, we're into

Paul Beldin

comment City Shirley, of new levels I'm seen as to Philadelphia has XXXX. sure supply Center recall. City, since elevated Philadelphia. on Just Center you

us performed Keith the of markets during that for is to continuing our are levels very lowest year. to And fact Philadelphia City any highlighted to so of past in is remarks, the five. XXXX expected year strongest prepared decline as be the four years, those our the his and encouraging previous be have one of next assets is And And going Center well.

Shirley Wu

my to do So redevelopment the plans. far has as question with as next

XXth East for you work. your talked previously So redevelopment in about

tell a in you could more are us So process in look like, and product that where is the built that could offering? potentially what little you about bit what

Wes Powell

Shirley, it's Wes.

the that be It'd it is that many details that is to and time You're of development the there. owned would talk site right ability the actively one. I right. It's premature time and working long announce perfect we're a about go process. still about We that opportunity land stated before, we're kind to be property great that feel value pursuing a But case a the like unlock into think with now. have we right have pipeline when where the we've project high a density our in details for higher on We're as when to one. ready and through to that's value

Operator

comes Our BMO today Please ahead. next Capital question of from John Markets. Kim go

John Kim

on year-over-year the and you year questions so believe your it you lease occupancy and the the at well. the this higher would range will sounds store of and blended be the be guidance, end on starting basically bias growth upward Couple the your as off higher kept like Why top rates same end guidance Yet both same-store is of at same. there guidance bottom not an your year? point widen

Paul Beldin

John, this is Paul.

outlook issued was that the guidance published that You're last of our preliminary end midpoint we of our the we with that right at night consistent September.

where preliminary our of we land. call, quarter third we outlook range would really guidance the on As provided a of thought the midpoint discussed our

as our historical about our we operating earnings full of around about $X.XX so range were and range basis for we guidance having or point continue setting FFO year, AFFO. metrics our practice XXX And the around and metrics

that. it's nothing more So than

John Kim

Is widened guidance that's is the or I a XX% of that enhancements mix one of down topic, the you've and part revenue been store also your Is drivers why range? this? on of driver growth. of And potentially same a capital reasons portfolio that one related know year-over-year,

Paul Beldin

out preliminary of to time at with to more enough the And planning bit we our along is No, a form each 'XX capital in we decline the deXcline pool consistent to we the have a our that in associated far than on is in that in XXXX, CEs comment we quite then XXXX we in both expecting but use technologies. process the and and invested nothing outlook, factory rolling published in rents regards of expect in and driven XXXX to our the same-store were that in spend our what by for really those, smart were portfolio outlook. smart we

Now done that that coming investment the down. across with is we're portfolio entire that

Operator

of Next question Capital today Austin Please KeyBanc Wurschmidt go from comes Markets. ahead.

Austin Wurschmidt

those it under broad Back within or any was last assets of to as call? group based And through of group of the single were was delays. a quarter's a Were assets? disposition those contract market specific the that

Lisa Cohn

were in of They or with variety contacted a of assets XXXX, that. at quarter's those the markets end last any like and they call were not buyer not anything that we a closed and single

Austin Wurschmidt

being set, And of Phase then complete related period underway? Phase at Any getting was set when it a partner of as it single funded? funded period mezz then relates Was the get partner I X time? a to investment to restrictions could how at sort otherwise? or guess is And soon or over it X

Paul Beldin

all was simultaneously. November. it funded It's in closing Austin, late

continues. and design development on They conditioned As now place. and to that one XA that phase two, Phase right taking as it's yes proceed B rebidding are actively their phase out through will processes we for they plans anticipate

Austin Wurschmidt

quick gets XX.X-ish fourth might million annualized of mezz $X.X the quarter, up, bit $XX the What items little item? you one offsetting if a just million, of that and that income as shy investment that the follow expect. it of were for And line of sort did the to you you

Paul Beldin

a that contractual You're accrued interest that XX%, our rate reported were income income and certain while the half. that that not on correct statement is offset for was as originating eligible the that was deferral. what by a reflects mezzanine And we million our of were loan costs that incurred

Operator

ahead. next Janney. our question Stevenson Please today of Rob comes go And from

Rob Stevenson

delta revenue together when outcomes growth the put potential new market behind amount markets view or And for the year? anything biggest supply? range of gap driver your than and of is the store your of in terms other what Keith, same timing the the had market you XXXX, team and for the

Keith Kimmel

not market put outlook Rob, change had it thank average at that 'XX, drove difference. pickup on a we you to from for particular any that. it any we that occupancy there's look or when Really particular 'XX when the had we the daily that together stronger

Rob Stevenson

pipeline. that How up now billion B, in doing then under C XXX when of redevelopment, projects for year, points mix your what construction I to development, And you and that year basis the that how then when factor dispositions acquisitions in factor the is significantly XX% change over it's A, the mean, are any going in in dollar these through you transactions up all A, you're portfolio plus you're and accelerate coming does year. you guys? of this are

Paul Beldin

I'll else address anybody response. it supplement let my and

You're right. our happens we'll opportunity as is see of And what create lot greatest a is than prefer. a heavy of to Currently little As, about the times more part we'd we're redevelopment, XX-XX% for by that location so but with that point. a is value our A, a thereby, community at community B shareholders an value creating up price in by that and bringing to taking a price rental A which A

a as that allocation. so And increases byproduct that

forward, as B a we'd But like we greater allocation that to point. to price look see that

I year, still throughout think XXXX, that plus are a million this there'll that C be you'll be assets We allocation a point will go of an sales likely sold so of but hundred as likely see And that sales. our B at of and As. we mix in few also price have

term, that bring percentage seek So to we'll down. the over longer

Rob Stevenson

of So disposition. just dollars Is primarily that billion Bs it Cs? and

Paul Beldin

said, Lisa see It's to a of expect attractive are seen in the in interest we and mix. that the a we've And as really lot market assets pricing.

will confident have pricing, dependent about the be us. but ahead upon So very opportunity feel exact we mix we that of

Rob Stevenson

the XX% wouldn't get to above term, near expect the As in or anything? So you

Paul Beldin

No.

Operator

today next St. from our And Haendel comes question

Mizuho. Please ahead. go from Juste

Haendel St. Juste

I about think guess. we the the we know I for flow, year, to but know cash assets' all can call Terry, the back we loans. that had late last existing now, a CMBS second? don't information it So you go I Parkmerced a had

So as the least on loans, the it in right and now, also some I'm the simplifications, you're about coupon on road shortfall the heard to cover in latest cash well concerns detour there, mezz see interest flow the as concerns at the from But loan. embedded your as asset your fee. value the inability, and obligations getting attractive fully to we've the who interest accretion the investors the from

still for I'm to do into the process? you decision So you transaction? there concerns I who all some those and might your this over curious, more the share guess board And is how anything factor want have

Terry Considine

for you for all, I question XX this piece was of Well, yours thank and read or thought your you and Haendel, thank and first I the that of thoughtful whatever morning. them, stood as out insightful. XX

the the balance your that I, to fairly management We nature between the the it question about As We and the thought rent also comfortable from very downside certainly about. reward. appraisal you and the something about both board, think of the of cash flows Parkmerced, control limited, is is portfolio. and from risk underlying feel see team but as

the entitled in So without And is feel in big units from downside we control very the San rent X,XXX good about it. number. a Francisco upside

pretty think And about feel good so that. we I

Haendel St. Juste

like you force so help over or next sounds could not, increased rent sale that shortfall. that occupancy the And the do some and right force But certainly -- if Is to an of the cover it five the assets. the maybe read control correct? years, there's anticipation increases

Terry Considine

to part flows just mezz of operation interest it, that rent part business a I I increased completely of will which the the requirements will cover to But of cash I'm second that first not the cash comfortable didn't I'm the overtime But rates the loan. guess, question, your or there's the caught I natural question. lead sure, hear. control

Haendel St. Juste

not mechanism the me the potentially if in Is if a do shortfall maybe if we're the they're My force that I'm five, assets. correct is that, of be case, which right? can the understanding, wrong by still year by you you and that have sale

Unidentified Company Representative

Haendel, this is John.

right play. So it due then loan will get foreclosure agreement. forced that agreement, it's different the lot There into if of they've repaid in is in when in doesn't obviously there's come got year sale five and loan an right explicit a a consequences the

Haendel St. Juste

to can update I or thoughts you've one anything plans? us But front. And there's been on, anything range on contemplating updated on Is there options. if quickly. just of that new any perhaps more Brickell share a you just know curious

Wes Powell

be. good assets it's ahead something Haendel, again, it's otherwise, we there, about the no, report the I'd update Wes. And the say, and for new but that. along continuing terms of we operating optionality you in as nothing of Thanks track to to to question. like expectations, feel we'll comes

Operator

next question Associates. of Goel Zelman Our from Hardik and comes

Hardik Goel

taking my Thanks for question.

on there's be just -- components mentioned couldn't Paul, that Just some deferred. the you cost

As on the in your run what's not good be there's costs? well. a for to about it rate, future just of I increase assumptions, as including What's think slight XXXX? looks the XXXX like But going those cadence

Paul Beldin

to So the and we XXXX's that is of to talked AFFO going about, that's of funding. be Hardik, contribution $X.XX, cost net the

extent. XX% so to to to $XXX looking of massive but costs it continue forward, coupon million. There's or we that'll not expect be be were to slightly, deferred able And that and to a the amount small collect eligible a offset

Hardik Goel

just not out So cost $X.XX? considering [X%] accretion -- funding then that additional the of clarity, from and just you net, for cost comes an have the that's the of the is the

Paul Beldin

$X.XX is the benefit numbers. XXXX's in to the No, all

Operator

Please question our Anderson ahead. today next Rich of from And go SMBC. comes

Rich Anderson

the see line the about from than a the sequentially $X understanding that I'm but as revenue item flat less million drop third than First, to about million quarter. same-store some asset that's was quarter. a third I was about sales, quarter. major curious fourth in $XXX.X question. such same-store the revenue in revenue there versus was top-line $XXX million to fourth modeling the quarter My quick the why

Keith Kimmel

the look. add it's it Rich, Keith. to Paul I'll broader I'll Hey and with flat the turn then over sequential start to

when to in at what's from know QX QX, flat was while revenue, really two there. important to sequential our it components there's So look you is

more it X% rates you that would of income out. fees, of residents and it retained move-in all first rental occupancy, news. that as that? a core you things our X%. of transaction income, it and from The application We quarter-over-quarter good, actually fees, by move-outs that being describe was particular bad the that flattened of that actually and activity to net grew Paul, grew offset is add we business, less offset by that go had lower that rental the number nature, But would our to our if which one transactions, of and piece

Paul Beldin

operating That's cleaning function would was and Keith to exactly the like repeat apt who Keith the of are customers fees a I I fact that consistent that what good that and articulate it, and too longer about, it's as our item news, of is that one are philosophy. that add it's getting been modest decline with necessarily really expected And staying to we're has costs. talking not us kind and are less that charges would late with and who here. the damage And create that non-recurring

Rich Anderson

mezz somewhat was, These the Aimco it Indigo's complex a stuff. question it, question ago old, [TBD], Terry, bit, even that people while two you've and in of Indigo the complex maybe and heard and perhaps is drafting whenever Brickell, maybe nature, years and bigger this So and a picture picture. or of stuff for for thinking sure I'm you. a off sort deal bigger are of few Haendel's are little all worked out

ago? you you feel to there complicated I somewhat is complicated we of to pipeline thought on conference that off a that So more these see not and call sort are it And revenue stream be not whether this or I'd more the a one recall or how return as back about a viewed response. of transactions give stage many should ahead, bigger years

Terry Considine

insight lower Rich, you by thank start much. I hooking guess your of congratulations like very revenue. onto I'd that to

comes not comes that simplification. or margin. top-line and activity it from contribution but And on fact, focus, fact, on bad from in our In

that value think we completely I and optionality. stay So cash creation are focused and to going on

kind taxes expenses of to market And maintain it's to company the important being back, the where a of which lots there as lots is for as more for focus, new that decade. supply, give has a that as than on in flat that Keith think resulted capital, another very I market in operating current us of is a pat excluding competitive

into about us are particularly culture I'm built and not So just worried our track. Those our off discipline. getting

The particularly particular to at looking those And going opportunity competitive at to deals attractive. we're goals, be amount fully a buy very opportunistic. in of to not investments market arrive marketed is

for optionality goals that have And will to we've been that same us lead will so these additional we look deals describing. that

Operator

Today's Instructions] from Babin Please comes go Drew of [Operator question next ahead. Baird.

Drew Babin

question expected in recently at My market? on of guess, to how has occupancy, on kind on based there I expectations? going kind whole, pipeline rate Parkmerced. of change kind And that it the relative first been any the pace -- is the on and your to Has that achievement a stabilized yield what seeing as your that, development or of you're of the

Wes Powell

lease we expectation, yet. be that we clip. at been market better continuing great Boulder, a as up know, rapid feel a may it jobs is Mosaic over And on as some and will you the year, Wes. feel pricing we move about it's there. this in has it than details it's better Drew, and But into to turn I'll take a on then to Keith first add stab Parc that

spread the between of today, X.X a color? to any range But would rate talked X, additional on I But feel and terms the early cap very X, quite sure that, of about be it's market. sub-X about yields we've a In days, may going that but stabilize. good where where think Keith, or not we and its we're trade

Keith Kimmel

soon, we it's absorption been XX% market. those and buildings that were a sort than in occupied. how the and on being into pre-leased the better delivering started par, received are it context, we To strength. of right we to the just have fourth think be been season, will have our delivered. three now better, greatest where on if ready building We we're share just XX% not, bit Drew, little you and give a units, coming the We're be rates approaching peak will get

Drew Babin

yield more projects, stand the there? Maybe basis? of pipeline, those Then do I update currently your expected where development generally, the on rest Okay. ground-up an of guess give kind

Wes Powell

on range ahead, cap kind plus but Drew, of going it's there of the those XXX days, to early points all again. in of whatever basis Wes in are is the XXX to generally rate that Again is. markets be those

So it's submarket. the the factors of at for us, looking

for believe is stabilization. than think it in that's I markets. But X. based Fremont of we pricing, on be City, X could is again, better again mid early Leahy, The different will So that. Redwood which a be example, north which But

coming kind as feel get good past better So update. give is of mass in, overall, where will those we pricing about I'd in, a demand and you lease-up, a very of coming we say critical where is

Paul Beldin

going is just this free a I an IRRs the returns on overall for flow all from just, we focus the X% lot expected and And are to these perspective, between add, and XX%. Paul. projects, was cash

Drew Babin

appreciate has question the I one got assumed on years, market guess I in to given on bit still pre-pay from guidance? you in guidance probably the I've of the paid color And rates here, much down I Paul, out of kind been forward sense. give potential debt secured what's some on that. right debt debt gets be years makes quite how schedule. over and year guess, available can a secured Okay. just now, pulled the maturity the opportunistically, this

Paul Beldin

that expectation XXXX Yeah our at the be that's during par of that a $XXX is guidance repaid assumed about XXXX. in have we can million maturities

in can is of will continue high-cost every that's and dialog other our Aimco. factors is But to lowering and ongoing cash we that lenders, assumed If prepay the other debt for repaid, be net actually opportunities debt. to maybe to our So leverage. positive that do also week with have we a so we look that we manner that have one

the time between with be can a positive NPV. at savings at of the which interest a paid net prepaid, prepayment the debt date our penalty, that's that is par, and if off debt So

We will undertake additional refinancing.

Drew Babin

be that to So opportunistic? $XXX be guidance Anything just clear, would million, nothing else implies else.

Paul Beldin

Correct.

Operator

And go from Street of comes our today Pawlowski ahead. next Advisors. question Please Green John

John Pawlowski

growth you revenue LA Thanks. in Keith, budgeting what XXXX? could for share Metro you're

Keith Kimmel

fall but that there. will into and We X.X% wouldn't give our you the exact range we that to believe falls number in X.X%

John Pawlowski

you are now. activity It the you're all right demand traffic to seeing the market. Maybe so in a what know the what seems what's innings rapidly the curious be in bit your side, numbers, then, in more of the seeing market? just color in pretty on foot and is that concessionary supply I XXXX? headlines early slowing sequential getting But

Paul Beldin

me walk just you I'll let it. John, So through --

LA two release into our pieces. First broken

Mid-Wilshire our of So Simi Ventura much and portfolio, the Not course comes our that really have we out LA. then of Valley, Ventura in supply or West piece. concern

As and built into the quarter think occupancy fourth saw we January. through we Mid-Wilshire, the about

it's actually meet seeing example, January so good an been demand. is good. at started demand have as our sufficient believe us at just finished XX.X% the October needs and XX.X%, of we're that typically So we to fundamentals pretty plenty There been and we in and for

John Pawlowski

ever we next will your offense from just obviously there last of it's how your would never me, huge be if But financial structured, balance the wondering Terry sheet, downturn, distress outlier then versus one terms in in And one. able play Aimco. thoughts you on to get the peers, be to being an

go like buying Miami, a beta an loan that's resonate in de-risk the mezz know, company much to Meds So portfolio does curious those to you're the profile, low and some diversified safe the a with resonate, building as going so not because seem the Area bit, a covered, you but how of office well in that not fully steps Bay little Eds Aimco. laggard, the against in you're

terms So to of steps or balance are next there the going company years, bit more? sheet the that derisk any you're in to few a take geography over

Terry Considine

several big question. a questions big only not That's that's

be to responsive, please, miss but one, I remind try I'll please So if me.

by about year, of with pipeline, I this our are to expressed good in feel is feel bring next point and time down published it just the brings by comfortable which delivery additional these in very our leverage of leverage; made, that the I me with today. comfortable down feel very guidance let the which a say, another On just I goal, turn the it very units he the turn. is question

of leverage. terms peers, be that number down it feel to about natural middle, target. have of moving of be a I Particularly, idea the business, will and I a dated I the as where in to that. non-recourse a with little good longer bit So safe be But derisk think course, running but business time, their to the low-fives, bring of will it, and our not comparable peers operation to in the that's at no which

remind our I say second that of The terms that that second the part we low-beta, In part what know low beta. is, me would was? don't target is

or think think would deals low which don't good in remarks, some said Brickell, is that ones general, opportunity stable beta. forth. stable very where demand I have think of that opportunity, for think beta. But potential -- his high very is you the in a I opportunity with And extra elements in a elements have about for you get there that anything for asset there's win. you look And adds. I we And great both so don't leads hedge there have I our that are is beta XXXX business that Wes to low value quite and which market, lose, you you are

factors worth terms But be as low out in that a it turn it could multiple beta has of to land the extra asset. that opposed to value

would And think an happen. think returns is are we secure, shareholders for their better communicate our so something to that there we yet and I expected opportunity also to quite

Operator

the to to question-and-answer gentlemen, ladies final conference session. Considine like the I and concludes turn any And over Terry this back for remarks. would

Terry Considine

in you Rocco, and thank my much you very for your Aimco. thank friends interest

just first of Flamingo together look low safe about in further Brickell and at If you do month to are these a please Many questions, at hand on will be and call. or beta us not. have whether

in of us be Citi And Conference will think delighted many of following what at together week. course, you the I you'll the see. by be

we're doing, transparent, want to great what And in you forward being to Have look and weekend. so together. we we be a keep posted

Operator

we conference Thank thank is attending you sir. concluded, now and Today's call you all today's presentation. for

disconnect may lines You a wonderful day. your now have and

Apartment Investment and Management (AIV) 31 Jan 202019 Q4 Earnings call transcript