AIV - Earnings call transcript Q3 2021 | Apartment Investment and Management Company

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Operator

Good day, and welcome to the AIR Communities Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Pleas note, today's event is being recorded. I would now like to turn the conference over to Lisa Cohn. Please go ahead, ma'am.

Lisa Cohn

Thank you, and good day.

the including we expectations. projections call, on are conference judgment, management's related this forward-looking make statements based During to XXXX statements found certain of to are uncertainties, These description a risks which our in and be SEC filings. can subject what materially may discussed be from results today. may Actual differ We'll also such financial non-GAAP as operations. from discuss certain measures funds full in information that is are are to reconciled website. supplemental These published the most AIR's of the the earnings defined and comparable release on GAAP measures part our Considine, AIR's CEO; Kimmel, Prepared remarks Terry today Operations; Beldin, come Charge in Paul Property CFO. Keith of from President and Other be will members question-and-answer of follow management during which are present and session, available will our remarks. prepared our to I like turn would call to now Terry Considine. the Terry?

Terry Considine

X to billion million those interest by a of repay leverage year-end rate use X.X:X, XXXX, multifamily so Across to billion. X.X% recovered for whom is selective million portfolio environment. all last demand the was the about $XXX thanks debt asset to time, by lingering trade excel, delevered no When levels interest later be John raising net Lisa, or EBITDA maintains invest more Thank average year-end to [indiscernible] of rate are but inflationary great above you occupancies, the in his managed proceeds driven a improve earnings. to you, rates expected without to that to is to leverage target area X fueled been dilution few than expect of XX% used in demand line, low X.X% markets, advantage raising multifamily D.C. by pre-COVID essentially X.X:X, million the McGrath, to raised lowering at their the There asset economy almost $XXX so, above prices income. acquired rents the already our XX%. Rents and, With amazingly substantially increases share. long-term Paul better the interest weighted year strong. pricing. current lockdown. year's proceeds increased we OP income with great expects be for increasing customer country, will on our of plus has economy largely pricing, Because in properties and fair business properties of operating AIR. to this more equity. we XXXX and of your continue have the we or his team investments the million and above to is be notwithstanding pre-COVID time same trend are will their those of costs, and $XXX of and have healthy a will interest in governmental peaks to also NOI growth in has It's Keith Investor FFO and that do their the per $X AIR business. for and and when sales a took track damage above $X.X AIR and units by future said the those so a are caused time is restrictions with for in Washington, too. This productive we from by team, buy capacity AIR. Keith $XXX

who is a Nelson away hard to and returned an also and who Co-Chief EVP. team together AIR Josh has Investment In I our like well, I'd Strategy Joshua Aimco as important The Stein, the from after welcome Group, alumnus directors, and such Bob chose McGrath, business, joins entrepreneur contributors, Minix Operations. and week. was particular, election Chair And Committee, that home Keith? the to as Mike this Officers. leave Miller, welcome most who I will to long-serving look also their work Capital will Allocation. the Nominating of thank and I AIR over worked to is what and reelection excellent and in thank stewards thank Kathleen Chairman, decade With John Tom Maggie of Finney-Cooke EVP, people. their an done John in friends, and grateful a our always, successful for more the to as and As them. are Kathleen AIR become Partners work thank to call no ado, Their forward considerable future. Board, proxy AIR HernÃ¡ndez. mailed seek Keith Head I of Bohjalian, earlier making And great well Nelson, positioned Property dear good I excellent who I'm the selections. to for turn detailed not Keltner, welcoming Kimmel, Kristin accomplishments for Tom the and

Keith Kimmel

Terry. Thanks,

we The and accelerate, Leasing third market quarter and outstanding. to our was take continued historic base positioned to conditions. advantage well of the rate portfolio

the up in signed up points sharply increased of basis continue to increased Occupancy with Signed new July for blended XX.X%, we Rates XX.X% the quarter. XXth month September. rates with occupancy as XXX up from quarter second XX%. XX.X%. improved throughout the strengthen XX.X% lease in the consecutive to built quarter result predicted, with third rate from September As our

October is we quarterly than last loss to upside over see continued current than past decade. through As better And growth to early lease expect is growth which from quarter, revenue demonstrating X.Xx Still, a result, maintain sequential any to come. rate. we occupancy grow more XXXX. or in XX%, XX.X%, our increased X.X% more the

the quarter last Most year Expenses from at have Revenue under was improvement revenue XX% strong points from quarter. with X.X%. X% our aside year-over-year X.X% down the controllable of importantly, normal the than basis bad who at basis residents the down second delinquencies, X.X% our translated improvement from debt XX points. into Our were quarter, and XX expenses XX% showed is the growth for Bad financial a for continued better results third debt of XXXX. quarter. up extended

and from the was AIR up basis our better our result, the Operating margin points a As quarter XXXX. of quarter, where XXX than That of year. are income quarter the In XXX apparent. cycle becomes is XXth basis the XX.X%, results with truly net third viewed of These operating beginning the edge quarter ahead margins since of consecutive operating with is points the last marks best the above our X.X% XX%. third XXXX. second margin perspective

with already -- average; began in Pembroke first X% Xth Florida, at design town homes recent XX%; with aligning AIR process results physical on X will strong roll. every low AIR of operations business; rates and we've growth. flexibility all has service and dramatic centralized upgrades. value and the superior double-digit Miami lease costs Diego are minimizing with San implementing a of and rent in staff best our that average increases while D.C., members. service; the our same in above now markets the our at and to Los that increased flat improving. and and we've optimizing that Asking decade at weighted And quarter the as quarter and end be our based is XX% than to quarter. or revenue City centralization; transacted the a continued thanks more X an our over a D.C., be reduces Bay durable the an to months. up strong Occupancy new automation; homes staffing team; transformation repair increase in The to with time due month. Across the Rates revenue months levels in $XXX in XX engagement; each. markets new are smart the first rents of lead new leases occupancy more all turn results the rents implementing high with reducing Washington, recovered our In center community And ahead occupancy controllable ago. quarter with up to with and the supported At and same facets business; combination achieved turnover the Denver program rates and third the ownership, through advantage, rent the now of X%. to to the asking operation. the are Angeles, margins. optimizing the XX%; than started AIR rates. of from built accelerating represents and in on our and These the continuation peak and Center expenses upgrade our achieving properties intelligence has X Pines, our maintaining momentum improvement low XX.X% pre-pandemic second Area average team in-place or with country, maintained October XX.X%. XXX with above of impactful for XX% X.X% continue AIR at on average to $X,XXX, technology AIR rent a up are created; This an date we year the detail growth, average of our acquisitions, and XX% through XXXX Philadelphia, run by of strong all individual raised all of of with more technology daily team turnover, granular needed of are materials; we're peer-leading the Washington, of our from to led and My acquisitions. analytics customer are investments underway; we effort of Boston than artificial edge rates to has coming on average markets the costs particularly in in margin pre-pandemic anticipate of to resources growing

drive forward our to with wins Executive we great the over their as serving call Your building to this I'll together John our our upon success. to McGrath, business residents dedication Vice Co-CIO. quarter look John? I to continuously our And made President, XXXX. and that, a look improve turn to now has

John McGrath

months had transactions few We Thank Keith. a busy front. you, the on

portfolio are raised uncertain of locales approximately We capital and values, the New assets York, of allocation received reducing our pre-COVID quality Chicago billion improve $X.X pricing a we our On average, regulatory road to track selling proceeds by market. to are and law selective strong have in and certain exposure of than to XX% California the through in and decreasing with higher markets. we risks on

X $XX million. sold property we for quarter, Chicago the in During

million $XXX million of with under have nonrefundable deposits contract properties $XX negotiations. also We another and $XXX contract of million under

it minimal. feel we exists, risk is execution of degree a While

We we buyers. competitive been process. have and has our to There have tremendous for our buyers demand well-qualified run backup a backup offerings,

into XX% the sell in interest gross we located Virginia $XXX to Additionally, earlier for a this approximately with proceeds. an million in joint of retains affiliate ownership of with interest AIR units entered remaining venture in X,XXX proceeds in gross XX% to properties an partner are of Blackstone week, continue of venture expected the the the at cap by properties. pending XXXX generate the end and and NOI in In of the sales operate is a year venture's X.XX%. aggregate, will $X.X to the general rate completed billion X

deleveraging will Paul the discuss be for trades. in As will moments, a and paired funding proceeds few used

X average acquired a the to the X,XXX Turning with paired for The space upside, net to of capital will short, of Washington, portfolio execute a Washington, below not of resulted a but market undertake office million. believe of which suitable reduction presented to development acquisitions. $XXX IRR and to in valued In apartment square land price land market. located opportunity outperform X developer. with will homes commercial to an D.C. by the we apartment We for $XX rents trade operating additional lease XX,XXX or and homes significant acquisition are trade and third-party market with purchase the a rather approximately from MSA, parcels, expects in of includes in development sell The parcels properties those and acquisition properties reallocation this AIR at feet increasing XXX XX%. D.C. the these approximately vacant of a million.

expect NOI basis of in approach and made X.X% yield fund additional over this rate property years to of yield Consistent with free expect dispositions it. $XX investment our we platform, Keith's to operating acquisition X% X approximately upgrades approximately a the a We million the in demand. first effectiveness due to an XXXX will higher XXX the and yield the than points cash strong flow and anticipate return local internal philosophy, of refreshment

about example a discussed acquisitions what those cautious Given team Keith's prices, good just create are we considerable value. acquisition for where can look of we is The and like. elevated

the I'll Beldin, driven largely that, additional and acquisitions, Range. Officer. future will look to turn similar call growth Florida, Paul Financial we to Paul? be Our the will the opportunistic Front our allocate portfolio Chief and by over capital Southeast to With

Paul Beldin

through brief the the expectations remainder to sheet. plans discuss and a for XXXX including conclude Starting dividend. future with fund our and Thanks, $X.X of our John. AIR's of sales Today, comment regarding with balance I properties, reduce sheet, of will our the growth leverage balance billion

As of a set part the this target achieve ratio our to Today, complete. of In second we call, this year-end. EBITDA separation X.X:X. the I leverage target transaction, plan plan largely outlined to quarter is by

closed properties an currently necessary of are mentioned, be repay $XXX we've debt, proceeds to City Washington, sales Center money these sales additional hard $X.X to million deposits As The $XXX on planned million dispositions contract John are of fund from of and trades. the X.X% expected complete used D.C. property under sales billion in negotiation million to on pair the property of negotiations $XXX of contract million. the in and $XXX additional

Washington, the approximately and a rate impact operating achieve and Prefunding we higher net better amortizing; using of from results reduce will Two meet identified. credit The and our than revolving and lower to to market the run $XXX third, full activities: to net rate approximately turning million D.C. pay both on used leverage year. for are million reduces expected a more of taking sales The EBITDA Virginia We XXXX in cash connection acquisitions, than suitable are making earnings. acquisitions; target, sales approximately door opening investment-grade rating last pre-funding metrics, increased with $XXX significantly ratio second, targeted future transaction the expect earnings the the pair I beyond. of leverage and quarter by see per solution of little public benefits investments likely, by necessary proceeds will Moody's of $X.XX to issued is property The with associated bond accretive trade effect turn cost need acquire at D.C. be portfolio million repaying X.X:X, expense improved leverage an remaining debt properties and $XXX market; thereby acquisition flow proceeds deleveraging to approximately the target. partnership the X/XX X an a that portfolio first, we fourth, facility. Maryland advantage in of interest X.Xx sell high year our Washington of significant selling our quarter fourth the to New and credit strong to result to comments leverage to by be costs and reduction York, to ratio those and of EBITDA property the slightly our to borrowings in acquisitions guidance. future of until before per $X.XX more of

been approximately worth First, increased The it's taxable billion year's in to this was basis alone the as decision would tax. sheltered difficult that from separation Aimco gains good noting resulting year a last $X that subject tax of one. have otherwise structure to

the we and future debt. and The higher penalty financial balance Second, I investment earnings, represents the $XXX improved third share wanted is prepayment About on anticipate mark-to-market to half comment million penalties of an increased the of expected with in in on fourth flexibility an property prepayment price. debt repayments. connection quarter the incurring the

XXXX guidance. year full Next,

gave and for loss consistent by incremental from the same-store this quarter FFO Sequential per D.C. third For sales of are expect from payoffs. year, this the Fourth be offset lowering the year an ago. We X% debt from At operations property results. the NOI months $X.XX to expectations we in the $X.XX. increase X share with Washington, and portfolio is $X.XX and at same-store full NOI midpoint, expected are growth third increasing quarter time expectations timing and NOI we guidance FFO for midpoint, FFO, the of per our and between expenses. share is our now revenue

of an Lastly, up question. Directors for XX, that, to Board the it first open the I'll declared share per we cash With Operator, AIR of payout XX%. a dividend quarterly on $X.XX of October the for and FFO [Operator over Instructions] questions. ratio call turn you now will

Operator

question first from Instructions] St. we [Operator Haendel the have And comes

Juste with Mizuho.

Haendel St. Juste

the fund the why versus investments some on why why And been guess your disposition Terry, management you've new I now curious your portfolio just remarks. you busy on addressed the equity. question say side. more on of side I'm pretty in and

I of there. OP the enough part used degree transactions, units a You comfortable the so some as guess of one to you're --

you then in illuminate returns IRR to was So alluded there maybe you some the appreciated. and on your XX% if curious, I'm could long-term in assuming be that guys IRR, increase comments. but differential, would an color

Terry Considine

X who McGrath, fit inside you've a rule. Haendel, call will Well, that time XX John more our on my at asked And knowledgeable. those, will some comfortably dear friend, for of be question I'll questions

we the at reasons. would why I X start just are are beginning it there and with doing say Let's now,

The company, try and we said is would We do we that to what we said we first would. delever say. we the

unusually rising The interest buyers was confluence had and XX% provided very an that of we off the second above rents properties we is time very high there chips these made valued and X.X ago, thought take a rates thought what low we pricing, reason attractive and attractive to -- was years aggressive table. it and that good

question was Help what? me Haendel. second Oh, The IRRs...

Haendel St. Juste

Exactly...

Terry Considine

Florida by you to to increase we add techniques to the Washington, right, XX%. about disciplines you're see across same cost free it's would will and and that? in I'm East Keith very margins can in you And in talented advantage Coast, advantage and that IRRs who the Washington return, internal The a taking or D.C. his D.C., runs comes our properties, cash their control want are of sorry? are And productive comparative technologies IRR, good the increase as properties the rate applying team, the acquired from the in Kevin in D.C. in those same portfolio team, in operators. of [operation]. hands. John, Mosher, and in flow whether Washington, our in more X

John McGrath

No, Terry, you're team driving his think the what's down platform our and and comes to right. I is advantage. Keith It

Terry Considine

did that over? fourth you third Haendel, skipped I a have or a question

Haendel St. Juste

worth, Keith, get use I years the cost painting expenses operating low. lot few Clearly, of bases last last transition our No, question. move Maybe if very platform, in there. next to rising keeping as R&M, covered offset can like in effective about to environment talk over costs? done taxes, comment money's things we and thinking relevant of those potential Terry. to and the could cost a guess here the into with higher with you maybe that maybe a the very, control obviously, some job we offsets we're portfolio I wages. No, your think that those you're you've a ability my your a effectively I some costs environment might

Keith Kimmel

Sure, like at of as them, in from essentially, in past an particularly record, we and this, goes can held XX that things the way course, what looks do you look that And be it other ability Well, that many, is the of we seeing the over that units, staff and and Haendel. them, controllable as our opportunities. price when efficiencies, we everything And on-the-ground track we at technology way back we've the materials, a team many expenses. look see we the is And right? go the years acquisition we operating variety can our evaluate things. and

be As we work look to know done, more in fact. forward, we there's

even we while that we're better. our talking current been even valuation to that do portfolio, buildings but so these the able And within think there's get many we've opportunity improve about, of to things

Haendel St. Juste

costs also headwinds wages, from portfolio, expense that various that, your R&M, I kind pressures, of of the higher us the offset or platform? taxes, drives portfolio how a of be also the prospects the be the assessment color could big where I meaningful but the et in maybe maybe guess, that cost are Any tide, on taking No, curious the that of potentially technology to those turnover cetera. appreciate but Sure. could your sense near-term the on

Keith Kimmel

that him is plan this question there's think impact, you're to there. I things and to to to I'll cost ways referring there wants be tell about we speak what better. of the how What in no different a Sure. will But I goods get And would that. add in, anything going of if and have find you we're to, I'll question some Paul some about to be Haendel, but let operations inflation like continue even of piece.

the the that is team. think of give happens. things success important so that one example We an I'll parts of on-site on that of And one we just you focus most the they're our

by and turns so reducing And we in easier. goods energy creating using fact, on And things the and work, happen is because result have better members higher of jobs a -- into turnover residents. turns less making satisfaction our jobs that we lot members turnover of with put make things for turn, durable then faster team and we our provide that customer that better in which team with lower wages, better into

have And moving less costs. have less we so out, we when residents

at environment, And that so going we're like inflationary selection, of over energy those things time. just when onetime an a customer that of but around types and hit, period look areas will are the reduce we a long not satisfaction, customer cost, put our to

Operator

have from We of Kalmus Zelman. Alex now next question the

Alex Kalmus

I like affiliate. side with what touch the did for How the on the there? fee JV want about? you come upon the to it economics And are Blackstone

Terry Considine

long relationship more founded want you between but the strategic a because to X John, speak and it relationship. known we've that, came about What other useful might and add? each we would you to companies,

John McGrath

to That's right, relationship believe into to able I assets we that have The pricing are add to advantage market the advantage would we because as Blackstone an is it retain agreement that I enter Terry. where thing the an were platform. have that, Keith's with of only of to we we take mentioned,

we are with and associated the and property I will On the are the the fee fees side, positions. those we we at as have mentioned, manager, GP,

Alex Kalmus

you any, generate that ahead looking fee Okay. on Is rate side? there Got run anticipate the will it. that I these guess,

Terry Considine

No.

Alex Kalmus

any lease, loss greatest portfolio? looking loss to where Is there market-by-market to I in specifics Okay. is portfolio. commentary the just And appreciate the at the lease the the on

Keith Kimmel

I'll it. take Keith. Alex, it's

comments would fact in at out, to what ratio later seen has loss as X a point just selection lease demonstrates but of you of XX%, really rent have which look as XX% year ago, look As place year our Miami, ability one our at quickly we rising add that couple we loss I that current XX%, increasing our though like rents. well even we've is that not, demonstrates incomes to dropped income residents even maybe see are at or have stand lease, of the that the obvious market to future our And actually to a our at of customer growth. would we is the course. wages. to places were Boston. when our as that just Denver resident even top And we profile, and really opportunity the a to the is And that of is a as lot at out,

Operator

John We now Pawlowski have from Green Street.

John Pawlowski

that sequential specific the increasing Keith, Could XX% if revenue Curious what provide CapEx market? in are drove context on some the to there's revenues almost just there? one any you programs follow-up Boston. your comment large rapidly

Keith Kimmel

Good pieces. X question. Really

The first, been high an We're occupancy. up stronger XXs year. over the built in running that even at we've the

to that, catch-up. gave tenant mid-teens, that blended those third, then a a look And at that the payment components a part. were us in big we X commercial In a had from we our were rates addition as

And so growth. those you the that's when things, combine

John Pawlowski

very the portfolio. Okay. Obviously, healthy fundamentals across are

most what's months? the seen last business few in the dashboard, Just look as just Keith, operating change from you've concerning your in your lens, the you at

Keith Kimmel

that excited into current concerning say I at would year great that out the year that move, they say say change. I'd tell say will that there there's opportunity, are there's highly residents for big not the that the loss believe I that have building in-place the further we're at we're point just but the us that anything rent, when qualified look to greater opportunity and with ratio, wouldn't going opportunity that's I with end was about, I'd in spread versus build that that John, look the which the next out to spread incomes is things our the occupancies would rents I'll a is of a lease. our ability even to point that we in great income asking rates high a a into strength. we and and you,

Operator

a question Luthra from We now have Chandni Goldman of Sachs.

Chandni Luthra

strong Congratulations question on basically Aimco. My quarter. with around is first relationship a the

So provide you are -- could timing of now future? your the redevelopment have be? where properties properties if how you perhaps update is could consider expected that an it provide you on should we in by, you And come X those leverage how the to about them that you will any near there, think to say, wanted

Paul Beldin

those have Hi, Chandni, Nice to if this we see you're Paul. anybody with X But properties and properties X from is to to in. question hear I'll our those option. And stabilization that can right, of are that option you. start wants And lease of we else -- fill at lease currently leased lease-up are Aimco. properties. are properties and Under process. reacquiring is done, that once of those that if stabilized, terms agreement, be the in terminated Aimco's have the the those And

that And been right now, not so terminated. has lease

when bridge make cross come those and to we'll -- that's a that are at we so decision we'll it, that And time.

Chandni Luthra

question like? you looks to -- back then future a the on Blackstone Got it. understand landscape more considering? such what to talked that And Just perhaps just the JV you're follow-up deals about. there that Are trying

Terry Considine

those of Chandni, of of Terry. the where fund lot a we team we'll at and lowest great properties We opportunity We Keith's to capital. can see look this find. cost is capital adds buy in environment the from value, all sources

Operator

a now have question We from John Kim Capital BMO Markets. of

John Kim

little calculate market different down and portfolio cap break rates. a Is relative rate high to dispositions to way on there by The to cap seems the any it results?

John McGrath

McGrath. this John John, is

if at a have seeing the can't But the are than at a XX. XX rates from that it will cap rates cap they what say without what buyer's the we I down break rates we're look particularly by be where I'll If look perspective. lower perspective, Prop Prop First, I is California, cap market. a hit,

our in numbers when you And XXXX. you're is financials see what we from look and so what portfolio our and for mentioned I at what seeing our it,

John Kim

a cap the trailing The the on number. like another is a for But seems number, would as to be [indiscernible] forward transaction. just Okay. not we higher. X% It XX% presumably sale rate forward heard as low what not

Paul Beldin

John. Hey,

jump interrupt is we're going comment calc. Beldin. Sorry to this and Paul just on rate numerator in for the John, to using I the was cap you,

And so expectations our we're XXXX. full the for year using

a John's And and So the California are of hybrid around somewhat. influencing sold. a cap being the assets commentary another rate, and is that it's forward pricing kind between reinforce thing quoted is would trailing so that I

And so the very a who's cap underwriting that what therefore, valuation property assets. rate level from on buyer's significant that the a the and we than of would of reset for experienced, effect have a portfolio perspective, taxes a different property and, of

John Kim

I elaborate remarks you think the markets certain that? exiting within in California. mentioned on prepared Keith Can

John McGrath

risk This underperforming, is capital than exiting those you law, John. -- necessarily they but if and looking have market What certain is needs. where rent uncertainty have is perspective, will, not at at asset we're are some an lower from regulatory markets, and markets higher a looking which also of high from but

upside. where by to quality is we using at looking the Keith's will platform again significant opportunities acquire portfolio to have we're what assets So increase

John Kim

more Okay. certain operate couple been in difficult you felt years? last cities has the jurisdiction mean, were more of -- to I the there like to that over challenging

John McGrath

process. we things portfolio sales. came that recall talked is calls, overall that's whole Not and you'll about with up we've of of and this by asset our where did asset And part to California, allocation the really. basis, looked We on previous John, and reducing an across that list on our

Operator

We now Citi. with have Nick Joseph

Nick Joseph

will of those JVs? could be sales, asset in California those be those outright sales? Or For some

John McGrath

They will all is This be Nick. outright Thanks, question. John. sales. Great

Nick Joseph

I even the one guess of the I [indiscernible] and just would guess Blackstone strategy simple? sale of just the the next those an not of pretty kind then. JVs more my JV AIR be are question [indiscernible] But So on do of why objectives assets outright keep simple.

Terry Considine

relationship. we to our add on it the -- levered equity It's Nick. balancing are weighing factors returns this returns, capital. that that found advantageous opportunities there value, and on maintain case, we to platform, multiple just And in weigh, have It's leverage

Nick Joseph

just the finally, was what portfolio? pricing the the units then OP And D.C. on in

Paul Beldin

the trailing a priced This upon of a $XX They're being that up ended is average and about the Paul. just closing transaction, upon unit.

Operator

SMBC. a the from from of Richard have now line Anderson question We

Richard Anderson

a is in Is gateway statement Sun be convergence and maybe strength next So of areas opinion? we've the a a in coastal is as offices could Belt of it of perhaps benefiting seen, bit the strength universities Belt Belt market. up, performance Sun ahead fair different and the Sun in open that and year, all there the and year, building little that up margin? as the foretelling open coastal a the next coastal up perhaps at year lot currently, more for your region But cities open the a reasons, coastal

Terry Considine

always good Rich, it's from to hear you.

reasons. I change. X-year be lockdown. enjoying Sun from will to explosion as the but by it The for economy think The right, Belt numbers is of demand are the, that different say, you're somewhat year-over-year just an comparison recovers the exaggerated

back high forth. locked to down such and continuing look taxes and to more so pressures growth sluggish overall we XXXX. so and economic as population try slow are The have and growth coastal economic And markets

So -- just they're cycles. they're markets different different and

structural that by the with that supply. but they will positive, Belt markets limited And markets, but think of a be I of you're the dealt pricing problems have the unwinding demand, continued to have to to more cost the with. in new likely be in you're have Sun going lockdown coastal

Richard Anderson

dollar going And an And down opportunity this agreement the now, perhaps of offer complete X little of then now the not at a you, or Does staying maybe overleveraged. deleveraged. other net I move in words, a XX any you met are those holes Okay. name, with the Or other incremental then, mindset the That's that, time, XXXX. going risk? you while in reasons, new on in to -- bit later similar sort in years you complicated of in have and And ends? but a In arguably book company, taking some kind was future? different rabbit of of be the place simplicity simple, I to and of think outcome. company middle complicated this I'm maybe in terms I Terry,

Terry Considine

transparency. of about about and have AIR all the I about my hole. simplicity. you it's It's But operations, characterization appetite rabbit -- accept It's about is all Rich, exploiting all reducing for It's risk. about advantage focus. in comparative we heard all the

this sheet. So avoiding balance risk, portfolio risk, by the example, reduced we locales quarter on development. John reducing spent also as time in limited we've risk to we've financial in exposure But talked for overreach. about, with And regulatory

of dislocations always a guess costs. and So key control shortages. had we're good not part is our of I labor by we've affected And risk chain supply

any to have what shareholders. multifamily, AIR, own don't efficient, converted make to percentage to that And effective revenue simplest, we of most more way benefit see for highest So we complicated. is is the reason to any most where want the the of

Richard Anderson

Yes.

hole rabbit not for to But you're mean, is on enticing and little the bit not right because fundamentals, you're it. might just bar be But go think to the it saying anymore. down fundamentals a are low allow word. I going risk of keeping I the to take going

Terry Considine

this in I forth. high in leverage. this longer risk rates. interest It's that could that's economy. by we a more addressed rates rates and we risk by and lowering every think have ways That's the higher cost-oriented we've and that with quite frugal And are market, low risk so that our there's continued that cap addressed unfold. market. you and have And risk being a the so sluggish lower of interest unfold risks plenty are It prices could and lots economy of

make Keith's advantage and in So properties a how big I it's anticipating them. we're be think, almost risk a any ability outsized scenario, to question and economic which more productive will always of returns. in will that result balancing But

Operator

[Operator Instructions]

Terry Considine

you questions, I your for no all and call to on Operator, if want of want help, the further are in to I there thank you thank for your AIR. interest

well. We of to couple at weeks and many at you various will and we look in it. conferences, of see Be forward NAREIT a

Operator

again concluded. now Ladies Today's Call. you call joining has XXXX for Communities Quarter and Conference AIR Earnings Third gentlemen, thank

Apartment Investment and Management (AIV) 1 Nov 212021 Q3 Earnings call transcript