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United Dominion Realty L P (UDR)

Participants
Trent Trujillo Director, IR
Thomas Toomey Chairman & CEO
Michael Lacy SVP, Property Operations
Joseph Fisher SVP & CFO
Harry Alcock CIO & SVP
Chris Van Ens VP, Operations
Nick Joseph Citigroup
Austin Wurschmidt KeyBanc Capital Markets
Jeffrey Spector Bank of America Merrill Lynch
Richard Hill Morgan Stanley
Rich Anderson SMBC
Richard Hightower Evercore ISI
Neil Malkin Capital One Securities
Amanda Sweitzer Robert W. Baird & Co.
Juan Sanabria BMO Capital Markets
Alexander Goldfarb Piper Sandler & Co.
Haendel St. Juste Mizuho Securities
Alex Kalmus Zelman & Associates
Call transcript
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Operator

Greetings and welcome to UDR's First Quarter 2021 Earnings Call. [Operator Instructions]. It is now my pleasure to introduce your host, Director of Investor Relations, Trent Trujillo. Thank you, Mr. Trujillo.

begin. may You

Trent Trujillo

quarterly UDR's conference call. Welcome financial to results

have package press made this statements. Investor afternoon yesterday most historical, and directly supplement, Relations to not measure call, financial disclosure Reg release supplemental were constitute G we the which and In accordance of comparable website, are distributed all the during forward-looking our non-GAAP measures Our section ir.udr.com. reconciled in posted with GAAP to may the Statements requirements.

ask in will any detailed assumptions, risks statements. duty a reflected We statements A we are no the for I get follow-up. be limit the included today. reasonable any questions expectations will Although update factors to we in we to UDR's X believe time Q&A of on over forward-looking we and call Chairman Toomey. answered available now get SEC. release the to do assurance in of portion, be and CEO, based a the not are discussion that and did press the to risk session not everyone's When forward-looking questions will that and that be our undertake give Tom after your our you the plus can during question-and-answer filings turn our expectations met. respectful your Management call with

Thomas Toomey

Conference Thank UDR's you, to Trent, Call. welcome Quarter XXXX First and

FFOA today share guidance officers, Chief Van me same-store first here. the To Mike expectations, Senior of Harry will quarter our improve Q&A Lacy, with Chris met Cozad also call portion are who per during from and of our begin, Matt and Ens, Officer, Financial Fisher, anticipate the will will and results. growth and we Alcock, On call. be Joe Vice results President available discuss the Operations; Senior

of guidance increase trends, prepared during speak will to our which the As demand the we our and balance remarks. by evidenced

the magnitude sector can potential the often asked on the of recovery the optimism are and capture. We for of multi-family upside the reason UDR

Our twofold. response is

witnessed macro office past in. the expect The accelerate conditions the economy on crystallize. cycle U.S. to Vaccination to the plans in most kicks front, normalized our growth upside fiscal across markets to continue levels. of and benefit growth operating to to returning rates on First, difficult recoveries. a and a for see multifamily improve which stimulus additional trends wage prime return as the Business It demand should the we as peak to from typical potential in more demand factors These season. position but unfolding, enter economic is have positive this this we recent great job leasing impact put drives realize and range to housing. growth, put on us appears

Operating Platform Second, cost an as million guidance estimated had, the ensues. additional further $XX deploy Generation alone. source and our release. his to will provided accretively our this the ability has an of our and by are further Mike restrictions. detail recovery NOI will our Collectively, to increases recovery restriction Joe discuss in macro recapture XXXX our year ability views income remarks. the this drove residents acceptance ongoing full sunset our Next capital the and in in potential of These have regulatory UDR recovery that of to no opportunity relaxation remarks. COVID-related we the But optimistic tailwind regulations in the his million $X during will past quarter this first

the in correct to take over the XXXX, me strategy back of time our we the have firmly future. at horizons and and 'XX and business look place I believe step intermediate Let outperform. a 'XX into

acquired of and drop with in $X cycle a makes focus more next-generation our of to an the This in XXXX nearly and backdrops. across business should are true performing we a UDR line. dollars operating new is innovative priced somewhat of Our to billion unique which we full capable operations variety the that accretively platform, In a in proved widespread continue way diversification, bottom multifamily well multifamily model macro space has of investment, a as represents on business attractively XXXX culture we entirely tremendous pandemic, properties implementing strides conducting amid capital. the made industry, when

an our efficient. of company service team's X the highly and full restrictions last are XXXX, generated towards I'm larger immensely of on years, recovery of strategic our making to proud For that's UDR our a X of has eventual increasingly All commitment and remain growth track of I we the In we and believe our as better-than-average our in take while team in per well also advantage share us. The relaxation delivered levels execute markets. ability to set of positioned progress satisfaction ongoing accelerating in, the we more to economic direction of residents opportunity higher of platform rollout confident many in our the record has of of. closing, regulatory FFOA front in

this, you a to out all to to that, business executing Mike. strategy. associates way conducting for our adapting For skillfully I'll thank a our and With the turn heartfelt of over goes new call

Michael Lacy

of and over ago, Thanks, indicators that we would restrictions cadence recovery track in be regulatory to how when quickly little XX reopening provided relaxed. how were the tied initial of markets, proceeded therefore, Tom. vaccinations believed and we the we subsequently multifamily rapidly days XXXX A guidance, largely pace demand

inflection for for second most Our best total impacted was likely the by in in would COVID. and guess markets our more quarters the quarter third portfolio occur negatively that or assorted second meaningful positive

core we pleased to than While the that improvement, expected. are yet backdrop has bit regulatory material improving to earlier exhibit seeing a operating trends I'm say

our page trends. to key added quarter, This that operating a supplement illustrates new we these

positioning X take ahead first of charts results peak through on and quarter our season, you those me of using leasing supplement. Let our Page

give solid, portfolio and in us were XX% second April improving rate results quarter higher, confidence and sequentially. turning have tick of that quarters. continued as further lease we our and continuing evidenced First as positive the blended third revenue effective by trends reprice occupancy can to growth results into growth These improve

in back witnessed In was urban higher to Positively, harder-hit first XX% migrate demand, terms of during traffic greater areas the year-over-year numbers. residents quarter. we

rate driving has up declined. residents these communities since improved Higher the Strategically, held to and lease While XXXX. of markets to markets, This power improve is and effective in XX.X% occupancies growth following reading a across occupancy occupancy are future April, occupancy has harder-hit gains. pricing actively our numerous blended during that April we resulted precursor our leaving physical better our usually in pandemic. highest in also continue but rents markets

near-term our blended has transition in occupancy from Regarding rate effect to blended harder-hit of had urban anchoring the on growth. a rate some areas vacancy lease coastal growth, markets

blended trend our the rents across expect I to higher continue However, market quarters second as growth rise. portfolio to during and third our

a loss to significant versus weighted X%, October have of As improvement today, lease when our XXXX X%. a at average of out gain-to-lease we topped

average thus and renewals to growth portfolio-wide first the basis in first our A lease to in and we office quarter return concessions. during forecasting markets rate effective is to we point premium downward have We achieved reopen XXX as May we turn in the swing. summer positive the the April trend growth and to material during development is new far at June saw continued positive full XXX priced X.X% quarter. And are

has not of roll diminish a our in strategy gross our As to maintain endemic anticipation to concessions through a future rebound. rents the offer rent reminder, been and

markets, quarters. from weeks and factors on pricing should anticipate so higher we X.X have in see As over billed reduce clearly X% X granted sequential across leases contributed our to to reprice growth, November improve on demand portion as a improved has of this amount next approximately revenue, to power, weeks the been our rate equates portfolio today. large benefit of which as in and peak have months. to we XXXX of average our X.X we concessions we the further coming results able new a effective in week more concession will of Each X to the These

assistance with a as reopenings, improvement Importantly, programs. in from growth, cash February rates benefited of collection million between rental in basis and we received XX by March further programs and variety April stimulus from $X.X job rose points

We expect collection the support going forward. rates XX% revenue these in range trends to high

same-store year-over-year on our quarter less and revenue same-store Based our turn Taken turned second the cash third on in positive in basis. expect recent be negative most sequential growth together, a the revenue to quarter. growth I trends, positive the

future directly trends, to and growth are by our bolstered these the to tied potential same-store opportunities core addition earnings pandemic. income In prospects recover lost the to

for reserves mentioned we debt $X.XX million have in Tom approximately $X write-offs. levels this rate COVID, regulatory out reduced trended remarks, improvement, million the Breaking NOI resulting in run bad quarterly in $XX quarter or accounted despite X% during rent only recent around pre versus restrictions lower to $X lower collections million further, per million collection $X As to in share. sequential first and estimate his and

Another million XX% regulatory our comes can flat monetize XX% our from potential as that balance lost pricing and have income short-term $X.XX initiatives real fees. rentals, of to to such through $X our restrictions mandated other attributed rentals the portfolio. amenity be limited late ability to The renewal estate across to of

time. As markets anticipate continue streams we eased, to reopen recapturing and these revenue regulations over are

and Francisco these strong of level. same-store color some Briefly, NOI. our are demonstrate provide it's York XX% and opportunity the big collectively execution helpful trends at San the to picture New ahead, market While our always

competitive markets sequential during reduction decrease the This migration dynamic power. and patterns same-store are NOI. We demand X into we its and positive of to and which pricing quarter, market of higher growth the as of and in XX% growth. Washington, and improving NOI a our impact the markets collectively supply markets. therefore, revenue in D.C. experienced high anticipate and first out rents During observed concessions new sequential these of concessions over higher these relatively occupancy levels drive quarter, These favorable on quarters. NOI helped of near-term Seattle coming levels resulted from

are Sun collectively These exhibit strength our Our XX%, with actively markets roll. same-store Belt to are above occupancy we NOI. rents continue rent XX% maximize and to of increasing markets

version been Next X.X, out Generation has XX fully XX rolled of now to Moving Platform, our on, markets. our Operating

XX.X% embraced self-service the Our evidenced move our conducted quarter first a as by self-guided touchless. residents tours have being our during to of or model

expense target With headcount interfaces to When we through forecast averaging we've remained XX% our our end coupled of operating self-touring by controllable the easy primarily mitigate $XX also automated the annual year-end our resident growth, and that by the reductions, attrition. initiatives $XX remain million platform increase rate introduction widespread to that natural to NOI in our across confident platform of on run XXXX. other achieve can by with use communities XXXX, of communities, million

industry, multifamily to their pride satisfaction, take should way to that career improves line field and for platform want I new strong and thank my that continued the have UDR results. and in mobility we bottom of at in corporate make hard for a top associates Every work a doing business Finally, engagement colleagues the resident increases the deliver talent reality. created

of the the been we platform years, like Although scratching we surface to have to over just Joe. are the is possible. on what And X turn now working I'd for call

Joseph Fisher

quarter I first liquidity for update. and a activity Thank a recent improved full our balance cover you, capital of results and include Mike. topics and summary our and markets will XXXX, The today year outlook transactions the sheet

first in Our per NOI internal line the revenue of of was expectations. supported growth is range at share midpoint FFO quarter guidance provided our by our $X.XX adjusted same-store and with previously and and

for growth, our guidance capital expectation NOI per improving share increase is activities. is $X.XX quarter, second the For The $X.XX by to from share sequential recent allocation same-store accretion driven $X.XX. and sequential range per our FFOA

basis in by increase driven a point from same-store improvement growth activity, $X.XXX from G&A expectation prior Our same-store year revenue FFOA $X, now from year-to-date $X.XXX representing guidance ranges per increased increases accretive year continued same-store transactional We throughout midpoint financing XX the sequential and from activity $X.XXX for increase offset with full growth, release. to our combined provided guidance. by and anticipate expense share from X% in $X.XX improvement FFOA the XXXX of midpoint year, with improvement our drove full when is and XX a a $X.XX an basis the expense. approximate This midpoint results, in with point our accretion

cash store growth impact now of straight-line negative of during This XXXX with were X.X% granted a are X.X% amortizing same XXXX. residual a and the Our on is primarily concessions XXXX difference guidance, due forecasting full negative to basis. that to concessions we to positive negative year on X.X% revenue concessions basis with in X.X%

share quarter uses and $X.XX sources we our low guidance FFOA XX including details the Attachment second guidance growth XXE and full of for experienced Additional guidance year year. on of the of are of end The available achieved supplement. XXXX of expectations our range the per and midpoint sequential FFOA suggests balance flat

season. positioned of discussed, we the rate As are by believe we encouraged growth leasing trends operating enter drive and trajectory are as well we the several forward-looking Mike to peak

accelerating We are eventual provide regulations these combined and dynamics a when progress we that will as of the easing year. tailwind economic growth optimistic with the throughout recovery

revisit to into a positive plan regulatory call once we of evidence sustainability deeper we have clear such, of view the on guidance of second As and season the our have the are operating trends leasing recent environment. further quarter

Next, a price end transactions point undertake A we by diversified market to primary when markets. is update. transactions mix, with and objective location remain

secure outsized and allow growth. While tools which using advantage implementing to markets deals, to capabilities renting public and quality higher short-term initiatives vendor out provides on implementing smart repeatable, data the and operate Generation needs, ample years. legacy over allocation our home mix. of NAV and off versus and better one, experience, headcount our over or increasing our markets investments over overlaying creation utilizing Number apartments XX time operations. and consistently such us the adds Operating AB programs jumping appropriate. to are produce decision in charging software, enduring number as appeal our location three, believe earnings investments, well include: exposures the premiums drivers growth as generate markets core renovating flexibility brings qualitative reduces as areas. likely management to set Number utilize as private urban improves Next ability Number and point rent curb peers. and science operating optimization, lower pursue to in capital time parking five, return our in which pivot coming suburban furnished resident operators areas these common into These yield provide scale Platform, view oscillate We two, rental and And assessments to four, Examples revenue include right to portfolio-wide analytics common value to a will where enhance a that improve compounding the we drivers our predictive in we expansion for better provide cost.

come of of transactional This sources Proof free and accretive dispositions, to points between on properties stunning our basis located Thus this yield. for a X. accretion far, from third-party with have mismanaged, greatest to these found the that communities, yield of communities in opportunities pivot strategy other returns. capital cash of to of upside, XXXX. We on combination flow or those expanded renovation outsized $X completed Pairing acquired proximate billion that UDR the are weighted creation X.X% acquisitions a of or of average to XXXX in equity. evident serves equity, the premium-priced repeatable first value like ability has given and This in creation what in of form we X% with the any approximately XX NOI environment, is during only the did our value nature quarter the XXXX further is enhance growth by is terms result. a

stunning say a result realized NOI period during me was this this again, generally upside Let a declined. given which during COVID, is

X X million. XX% $XX includes to investment in Each X in sold equates uplift X year which activity, to details to X expect rate. and County integrated investments upon approximately acquire On to a for years. additional for We at Boston quarter, occur the the proceeds and yields communities in to of million. first suburban to yield once we projected in generate our platform, X lastly, cap DCP NOI. acquired totaling each transaction total X% Please average outsized increase X are fund X. recent by committed under to or contract a in mid-X% approximate initial X communities, from we the participation communities, with under and an weighted Los combined mid-X% returns liquidity And event, Orange $XXX All year expected refer release Dallas quarter This for suburban at fully yesterday's during to are profit Angeles, approximately X transactions. X% low $XXX a share on million weighted in average we

of Moving on, our balance and capable liquid capital our fully funding sheet remains needs. investment-grade

leverage development have these measured overequitize opportunities, X.X completed to include: in We which expect for first, $XXX stock agreements future X.Xx. forward some using quarters. a our plan into We DCP during these funds sales should of for shares highlights the approximately which Some we debt and expected entered anticipate improve we coming of EBITDAre to X.X to of accretive acquisition, we common others combined the million million by quarter, to close proceeds. as investments, by on and

Second, after XXXX, million in debt excluding in quarter X% have bond consolidated value the million, of debt mature using the approximately credit or cost, redeem mature issuance first after XXXX to higher unsecured to on only $XXX to scheduled amounts facilities. our proceeds $XXX of X% from X.XX% our enterprise originally we scheduled through

balance proactive relative in management multifamily liquidity lowest weighted interest outlook group. the the best strength sector with sheet X.X%, X-year average a and of puts the peer of position the in us Our amongst a rate

we our announced million is attachment substantial capacity accounting And of midpoint unsecured credit dividend. covenants. approximately forecasted and dividend of AFFO to X% be $X.XX increase line payout cash last, share recently as evident our for our continue share, free XXXX flow XC bond to supplement, in $XXX after of under per Resulting we on annualized payments. of on is XX%. a Third, to our ratio our dividend approximately per Based have

would be during undepreciated XX% equity enterprise value, debt-to-EBITDAre settled the As were and basis, on X.Xx agreements a X.Xx quarter. of forward but Net if ventures. of quarter outstanding end, our joint XX% consolidated was was financial value, book inclusive leverage consolidated on on

our balance as credit and liquidity from forward future expected commercial of our $X.XX proceeds the paper billion. cash potential including XX, our capacity agreements facility measured by March settlement of the of net sale was and As

sources is remain create balance our balanced, a variety together, healthy, strong, forward position value. liquidity uses and sheet remains and of we allocation our Taken utilize capital to to options our continue

RETV and subject the definitive purpose to approval, of a end, which of approval X, are stockholder subsequent conditions. investments is Confirmation the a special by is customary X SmartRent, investors, agreement merger company. with which into quarter merger held regulatory of X Finally, entered lead other to the acquisition of we and X

early our adopter UDR of across foundation many an Platform. as Generation Operating Next of was for technology SmartHome As you of SmartRent, our the part know, portfolio,

will us million the number until disclosed With it our open on this Q&A. to on to RETV topic publicly pleased industry still including intend company. not basis benefits to Operator? SmartRent a time, to and be price, ago, and utilization to there merger be of it approximately continue provide investments. the We is At Utilizing that, and its RETV. bottom do by approximate satisfied, a presented through are provided lead our valuations see to implications is are us value interest up to by $XX presented Related moments on the any I XXA We mentioned our appreciation will appropriate. provided our UDR, a and a within with many market our RET rest information of realized commentary million to of but in on on accounting yet line of additional supplemental the $XX closed those our investors conditions factors. pretax this at depends supplement following our of RETV, to GAAP. increase SmartRent in transaction accordance could becomes tangible valuation has public for the to XXA to be the before valuation to presented results fair the operations, Based provided on

Operator

[Operator Instructions].

line from Nick comes question Citi. first with the Joseph Our of

Nick Joseph

hoping seen far expectations from recovery versus you in New the I could you've few was compare And quarters? thus markets San over Francisco York? the both your then next

Michael Lacy

we've XX.X% San question. start to York a have to it's Boston, today. been tell when around, promising little New we've the for you performed specifically, than And our from And in to interesting. those I occupancy I say, concessions markets look say, the during Francisco, I'll just see at general, Thanks would able expected improvement. XX.X% in the drop. weeks, few bit And at continuously seen Mike. it's around want we Nick, New the you, better last a York, quarter, general, remarkable been bring year. the It's to been really

to upwards seeing last But XQ little down see in by weeks, around still evident down today, average significant closer ago. around weeks. X improvement which to concession Columbus New And market days continue expect to X also weeks would around SoMa by financial X slower We're XX%. We're right weeks in district i around and between some XX.X% concessions Chelsea. then X it's of come to X to weeks around we're as of today, today specifically, that tell our availability XX.X%, compared little parts to hovering is very But XX.X% X to our the transition as just starting as well of the in So that to as been whole. a the Midtown. a X weeks in XX% a X to improve. bit, down X growth, X to occupancy have different this again, But Square. we it well Downtown a from see the San occupancy of blends down go X and lease break as different overall, We're still to and occupancy York, XX is in see to to to to we're recover. city. new as weeks We're is Francisco, just that's you, averaging couple to excited

Nick Joseph

demand, are apartments? terms of in you're of any moving the trends new picking and like have there And in seeing of who's you interesting seen that actually from that move-ins, kind up back

Michael Lacy

trends. interesting have do We Yes. some

XX% before. out specifically, XX is And tell saw in something then seeing not group a that is of And stats XX% of our seen twice go haven't XX% that to saw last For It's We outside Francisco, in likely to alone much year. from that and big that age the We've market. as of pretty market now. demographics from from what jumps XX-year-old number comparable the come changed year MSA. the San as live coming as age XX% move-ins to there, that outside market. And MSA. to New to the I'll in York out difference. compares you we to me about XX% We're about

Operator

question comes of Wurschmidt the next Our from line Austin KeyBanc. with

Austin Wurschmidt

and of apply mentioned, all of and midpoint Joe, rate, gave range to here math million in the April, we get So for revenue appreciate if that pretty stable, and remains to check the wanted around collection you assuming you sort But see as details range just at guidance. the had close look the the figure the you on was you a right that if guidance? high revenue $XX.X same-store XX% revised does billed that

Joseph Fisher

for the The and build midpoint Now. and expectations, we you FFOA of our same-store of take it as expect it then both a XQ. for guidance. expectation at NOI sequential both revenue kind XQ, works, in our way to move we stores, into see If actually pretty trajectory on which as do if improvement and internal tracks FFOA similar revenue same

the those of If the the rest get year, expectations. flatline you to for low of you end

supplemental effectively cease And reopenings we've or about exist. So talking all assumes is to of further the effectively that pricing improvement no we're seen the pause. that that power. that on trends the second the There page

you of prudent leases ongoing. collections number year timing pricing the The move continued we're we the think other of of the where of and of as with somewhat the some up terms economic that numbers. signed. be there, but to given at regulatory be to in environment. conservative I To is those it course, getting a occupancy, the year So XX-plus see midpoint, to assumption left go throughout And need still recovery probably back improvement power, bringing income percent the

guidance see didn't of the end from a high continued improvement to do get ranges. XQ and those you So midpoint XQ -- you XQ into just or to

Austin Wurschmidt

And helpful. of in That's commentary it. kind Appreciate some Got you Okay. coincides remarks. with guys it. the the of prepared had

and demand. Secondly, just on traffic

that there You provided how visits. and leg some on in up driving in driving that traffic Or And good rates really levels start traffic What people some firm that -- historic call have April, versus it, Curious up? then really up? out big are as are look and compare for is what's conversions states are of people of kind further units, you detail these trended. to for May seeing leg are markets frame? visits that back-to-office looking time really, how people

Michael Lacy

Great the last is, it's I current trends I question, best Austin. of over than that's I'll few trend higher occupancy. some a seen would take my say X specific, very in probably the I've weeks market markets, have XX-day that.

start rather there's you that market So are sooner And that can some later. tells looking type on your move me that really to rent. than pushing people when have that of you trend,

the like Sun Richmond, us. places that Baltimore. for It's Belt So is

closer relates we've portfolio, as a of a XX%. And converting, percent of phenomenal Francisco, that as compares our most year-over-year at results rest conversion, and it's you sup, back was San at time. around look the to York, the over XXX% time on Page on X the Boston, traffic, count, to traffic home it that to But specific XXXX, a to, compare provided New recently, a weeks. when then which, chart few seeing when Just of in this X.X% we last basis, like been normal our X% I period about typically, time, to lease say, up the that in

more frame. of leasing typical seeing early end May, I'm June of So time that's

Thomas Toomey

more deal our with a more prior traffic leasing are to stabilized likely And this period us Maybe with enable agents. Toomey. versus than cost platform does Mike, people follow-up. the platform is How much X of the anymore and to to lease with that

Michael Lacy

to the point, go time, different right? in the the to on people more That's can upwards up opened By we We've property, see come Tom. a the this X, to at first Obviously, Yes. X out send good property. a past. talked want units about people we've X, fund, sometimes allowing of

on impact our traffic. So obviously, pretty a big that's had

twofold You I say can markets. a see lot it's a in it increased of would numbers. the in

So factors that the just to continue probably to on how X forward we're drive high convert bigger that's at number of rate. and going a traffic able of kind

Austin Wurschmidt

And detail. follow-up. great I That's appreciate to the follow-up the

Operator

Our America. next Bank with Spector line of Jeff the question comes from of

Jeffrey Spector

to nationally I'd thoughts comments any like versus, there's regions, say, Sun this Can even and on supply markets key And you if Belt 'XX supply. on turn if let's watch question, initial some Coast. any provide First year? or possible, to

Joseph Fisher

of to be or number Starting plus about going That roughly as talking XX% come UDR's X.X% what That it's seen of taking XX% with place a terms year. we portfolio, up this think revisions have probably some from stock. have MSAs in to been quarter the 'XX equates growth in to about supply Joe. Yes. Jeff, terms we ago Coast. of in minus and would of XX% continued has delays down we're we

little is down of to better our Submarket a flat in actually. that supply. in sense. be Overall, going us So competitive it's picture to getting like wise there terms for bit the is for looking portfolio,

Seattle. and little 'XX Northern difficult, that little the L.A., bit MSA looking the us probably and markets York, that inland better Orlando look say New for whole. than Orange as look Nashville, County, a wise, a Boston, bit Those more Baltimore competition So California, Empire. in a I'd best

of high starts. you If into think start little a fast have of all 'XX, bit frustrated by forward number and I to been the permits 'XX, stubbornly us

and seen years. tailwind levels. quite as of supply those into the Relative in probably and starts plus down off are recoveries historical we off the coming you've or peak So XX% that of we minus get capital permits choking have from don't to

relatively Clearly, market cross as start through. that's I housing think, when see to while regionally, housing even has as the about there. single-family supply total you static. down And coastal come trend remained look a think Sunbelt the over markets that more, have that's to out you you you

a So markets like we're our to Austin, The that keeping that Charlotte, best be that kind Nashville. Phoenix, Raleigh, and bit on. eye are of little worse troublesome. Markets more Denver, look markets

a the So Belt Sun of markets. lot

better. bit little Boston, Sun little ID better. York, then On better, looks a and looks L.A., Orlando little Dallas bit the bit the say New within the look little ones then bit a that San Belt, looks a the I'd a even Fran, better. And Coast,

So just in supply basis. though, a generally level, reprieve Belt speaking, forward high not the seeing same on Sun

Jeffrey Spector

the and that's created second remarks. provided appreciate Joe, some then of the value growth very opening color my increase. that -- fund Have like acquired, Prologis something especially on to you've Is That's NOI on you during Joe, resources? What from competition, really details the of get into to your the the open-end grow mentioned doing more, considered it do And as business that? Really business, acquisition? assets pandemic question, UDR on the has limits you to to back UDR your capital, helpful. an some more similar and you

Joseph Fisher

Harry cross every of inhibitor When us. going be that through to opportunity is available, presents value ops, that platform, external biggest that us that the probably go if opportunity. we the The deal growth in list terms the of to it's the for Andrew's mechanisms not Yes. initiatives, are CapEx as and available set Desk the be creation programs, it

fare those a figure are dozen. cap we a upon so want submarkets to and not ops ability the the execute operate X.X% kind together dime we're them plan the out markets time. swath to business around put that go through a So from assets opportunities can upside that that be in of across wide targeting, cap then and of the have that to it those over it get and assets X.X% Those the

there to may think continue can of from capital, have of we that the in the probably X have perspectives. be advantage those I we maximized to we sell and around any turn sourcing So The set competitive opportunity biggest and always the that think the out assets take that advantage we inhibitor is go place.

can and we go find always sell assets into external by limited piece, But opportunities. to think recycle So additional that. accretive the I

second in business. relates As a the fund and we to do to with it great JV with. Metlife that have operating continue much partners enjoy We be the partner part, very

having do. that that to accrue complicating from it's But it perspective. have So look wise, an business, not generally keeping our to avenue to have fully and shareholders fund explored, not we've we we in-house to that don't the tried change value is generally something the beneficial. creation plans any And

and they no with discuss have this Board, plans but the something the So time. [indiscernible] at

Operator

Morgan Hill Our of with next question from Rich the Stanley. line comes

Richard Hill

that I want the squaring notably metrics comparing, you're to the maybe brain blended some pick of compared about to your operating same-store spreads. revenue

similar the same-store I remained steeper spreads blended should lease growth say, had level remained recovery. or over spreads But looks it a peers, I'm troughed rent if you've and quarters. I effective think to at stable has troughed like revenue but growth, have negative. And solid really past several much CoStar a more looking new at data,

why advantage with So into renewal occupancy it's better now? bad and right asking, growth expect I guess to account even where it spreads -- they of the a same-store I'm trends or debt take way where going revenue is are long shouldn't than we see just are, where with -- taking

Joseph Fisher

Rich. It's details. for it Thanks, I'll Mike kick off to Yes. Maybe turn Joe. it and some

X seeing. clearly, terms in the we expect expect given to on fundamentals we move throughout the of do revenue but displayed an our we to trends expectation year. believe territory, even think definitely of year-over-year I in a that third acceleration that see, growth, of over, given performance we're we on negative Page in we've flip quarter, but year-over-year the early see likely basis, as do the maybe remains we June do XQ supplemental, the as the in

here. we we efforts show operations year-over-year think soon start number the So will that through do pretty that all forth to put on on

the rents. I that XX down minus press table, occupancy some on of walk to get bad the or bit throughout -- terms minus -- the I down show the little into relates most release in the Page X to the specifically blends come it comment starts bps to at Page X your As on that year-over-year within cycle think of a versus plus of we contribution X.X. lease. are to the you that blends mind how as for loss, to bit growth, lease I'll blends But are little think that from to concessions, in the X.X% spend time self-explanatory. that more Keep a gross debt probably reserves

to new capture a have you So that place to lease in metric. actually have

do XX units are in in urban about of that of we seeing basis the explains 'XX occupied have So were down a only is of the here . lot today. you're XQ What were really that X.X vacant that that higher that sitting coastal XX% down rents markets not points

not in blends. is When so leased they And the get captured up, they show that up do blends. will in start to

But explains weigh that on some XX% rents time, revenue It have leases XXX, new are to units to occupancy, more as the put in sitting the it's those on units, stream obviously, So where Over be you positive higher X.X start trajectory of out clearly they're markets down. driving down the vacant really in some could opening the same concessions coastal there, comments and a heard pricing lost, positive going. much to that positive stores. I other you in from in power, But . retaining distressed potentially place think direction, those has markets depending that pricing been on Mike XXX, head to right if of lower markets lease those lease at you new you weigh could in at of as rents. going major there that that are revenue, our XXX build

positive negatively we not year-over-year So think for impact a we hope see forward. to blends, as it's do but that move

Richard Hill

I horseshoes occupancy. Got It's and long, too happy to grenades square okay, if our question. that have an guess first the been today wouldn't my called me follow-up take hand question, a be and in an And just you idiot. to you but with it it call But of it's included trying can sort me a offline math. first economic to idiot. It it. time I've time certainly career. have you're in And just fair call the be why And not an I wouldn't idiot

Joseph Fisher

definitions take we offline bit then different it's and can enough, detail We between more dollars through the little allocate terms in and walk of physical the Rich. economic. okay, a in Close how it

We'll it details we there. And don't go on we So questions as can of through kind on why take have others then it. take [indiscernible] it into well, the offline? the if

Richard Hill

Fair. it. Got

just So question, one looking forward. as we about think more

is occupancy pace You're or coming pushing recovery abate XX for this bit. a mean the how good stop in is point. as But next XXXX in. a is pressures a where higher what's going to and looks the what same-store be looking guess allows 'XX. you guys you beyond have were half Zs. maybe I question the really than push millennials you you to into nice clearly early And that It beyond revenue from to is, the rent, to But months, actually from in I obviously 'XX Maybe at to at of rents start I second that. little pushing is, seems more? We can debate a rents by even demand there be of even you there lot full begin scenario supply where like

maybe a question So can it like term, guess, about backdrop, ultimately I asking scenario? I'm And reasonable given inflation? the longer a that's you outpace seems

Michael Lacy

is I'll Rich, this that. Mike. take Yes,

breaks, if it's struggle. we higher. generally it's I you just to to a push down within And bit we little rents, are it Others, think until again, markets. a pushing happening comes -- markets, able and it it push to will. what's like speaking, In we're some these

Orlando, operators private lowering can us. concessions is compete of It or think for market push a example I we start at hard. they good so some like we place with us a So puts on But point, lot a their rents. today doing pressure with and something

of we're -- trend. specifically, actually So just as that it, to keep to, long going charge. charge an environment, even then in can and pushing. anything. In we can't call it to managed places, what we stable, is terms our as occupancy XX-day down comes we renewals, we're of X-week some them, And XX% regulatory still we to the And

a to us limited we're that watching So We're that's up, off. a going as bit very closely, and that. by opens give soon lift that as of

Operator

line of the with SMBC. Anderson from Rich comes question next Our

Rich Anderson

your in New in actually with XX%, have screwing by Good a mom-and-pop and the silver rent alluded guys acting to a owners inefficiently set? so seeing this investment and that the A potentially competition. little is the about kind gotten of me thrown you towel the multifamily anymore. Part that whatnot, And concessions what just York. hearing hands in of Next ownership the the business the to not private of for of sophisticated, former platform. sophistication private are Are so some to about wondering of question you the problem of first XX% you that if have of competitive get people bit besides environment seeing that them lot sales up just your and lot is from that business maybe and in math COVID with is apartments have was relative I'm a for particularly decided degree. Gen you We're out more we're to properties not sort lining condo

Thomas Toomey

an so. product pull Mike With that tailwind well, finding It they plays take to say and it. out. Rich, let's we'll on over there's inefficient that a the operators this in I in would industry. opportunity where purchasing long the off, certainly, this, respect years, of, fragmented operators very always is marketplace Toomey. And do we're see as from our of couple marketplace he executing that and seeing at see be the advantage you operating going it's gives hope to as last could adept can

The look assets bigger both Cap think exploratory pushes interest think that going sale like. is to are middle today it certain the they couple most out old of next interest And those push going a probably that find be lot may, would constraints, up of to the elimination And like? the be for purchase. Those you question proceeds thing. I from level potential going the one on up they're what the minds assets been typically investors' look a new another. we're rates assets into way, And rate talking increases law free pattern. of pricing. with potential a lot the pattern more the own to what the or of would I gains about X that to pattern And is break table. months. if the XXXX Has over going or tax

next X positioned we're we'll should in of the it think I answer So that, unfold. to And well have months. think advantage X, I our take

Rich Anderson

Okay. related, I multifamily. Good. about And talking then guess, somewhat unrelated question, bit a but

acquisitions in I of next on years, the the snapback all returns expect So value and of couple really discussions growth went to kind in of deals as which the much thinking we past you natural Or kind But a be that Joe, rate underwriting that. guess, see, phenomenon which level of cap years looking you the when kind do about placed of recoup over guys markets you we and through all various what investing you're on that of as not in ground? are may value out? lost and short-term performance posing XX

Joseph Fisher

when coming New XX% We're XX% San in degree. saw that really we're Francisco, that adjust was the frame time you've never assets. asset down to seen York or to NOI if values some harder-hit we in more trying X XX-year and to But depressed about Clearly, NOIs in thinking look these markets. of more

So you're X:X not asset value. a NOI and seeing adjustment

you the buying by NOI So can as not take stream of depressed that upcoming advantage pricing. if it's

while expect you'll that of off do coming short-term we see a phenomenon So base. fully low that

it's on our work can trying the in sourcing you kind we've We're based We're frame. release portfolio. we're time not how quarters. here seeing of recent coming. that our a more think see for coming, about sequential We X see markets but that to we to on You into And press in momentum of strategy basis. in diversified more harder-hit XX-year deployment the necessarily and some believe factoring it's the think done incremental those our portfolio

then sourcing D.C., bit buying little Southern as a well. some And in cetera. Tampa, So California in Philly, more Dallas, Boston et and

margin, little a already changes on that given It's but position the much big it's be with portfolio. not starting margin. a shift going a a the we're of very bit So diversified on strong pretty with to

Rich Anderson

it harder my to X cause snapback a Does through process that underwrite almost is the it the to Does vetting distraction, time to make XX-year see question? muddy frame? and

Harry Alcock

is Harry. this Rich,

outsized the priced, near might properties NOI and to in, that the get and might there and buy market we the rent it I'll be either we're with inefficiencies, we can a theory sourcing growth, market assets. priced some above where something growth, the UDR be to generate outsized growth. that we're jump going think we vary, with assets we some properties we platform, we're returns. the rent that's market should in. it be But capital mean market do I rent going buying, property is I the NOI primarily, -- focus through can above over we're growth push believe and other so focusing think what the we where asset, And but realize programs therefore, I we in

Operator

the Our Hightower with of next Rich question Evercore. comes from line

Richard Hightower

the a third don't fourth I I'm the in know Rich or row. if

anybody. So I don't want to confuse

growth us mind? apologize driving if the So but this you one tell midpoint reduction quick if expense housekeeping year, one. what's don't point this in missed I earlier, XX basis I

Michael Lacy

Rich, it's it's things. X you, Mike. I'll tell

So would actually seeing I and our now. we're noncontrollables both benefit controllable right the attribute controllables our And platform a on of that to lot on the side.

first our expenses Richmond, our it in was with expense controllable it Baltimore. down closer For A the been example, that, the for had well around If on to have lot going would with wasn't in as quarter growth snowstorms Texas in of was to flat. do what X%. as

elaborate then and nature. on it's side, our can move just on So have personnel as taxes XQ, relates XQ to it as in we're the coming both things components we Joe but good and pretty been And us today. into And that that more reductions seeing noncontrollable trends for better. of

Joseph Fisher

Rich, Yes. X at at the you X.X% sup. in we came real in Overall, estate the on look within side, quarter, attachment if the tax

down is original appeals in think points better. from our of of around number some about full For year, the And the by then we've XXX driven basis had. X% coming the some the probably we valuations really growth. That's that work budget,

some and that to York we're point. and back of half well. kind better as Florida at So about feel and had in Boston had throughout number the that But valuation a risk We've Texas there a of New piece growing we've relates we well of better. and But feel derisked as where it the year. Tennessee lot others the out portfolio equation of and wins. as in the some California, appeals We've still as

Richard Hightower

just maybe And some helpful. follow-up Mike, improvements. then, That's the Okay. a of on platform-related

expand that company, You I surface to you scratching a the curious this what's mentioned, as care if just think, you're the of prepared in at time. -- on I'm you possible. comments, that

Michael Lacy

talked we past, information can a we're we've of very here, But Platform you, very scratch get tap kind And some little on got of to can And idea close a reduction it. tell push of kind out on how if with next into at that's We're the what what into of we there. we're pretty lot data starting to We're I and return a again, about couple understand the answer on have of seeing into, to Rich, time how data been XX you XX% all science. getting on going [indiscernible] we've to but in markets. XX did exciting are gave point. more transitioned really this an putting the we've it's I it's X.X. Yes, of there, years, the some bit brief leeway much system, starting them, I prepared in will, the to in demographics. with continue get sorry just of much and the opportunities our my is we're we'll to remarks, surface headcount sets. just really, what over excited mention of we've going take, to

We're through blended our growth. play Our and that starting heat to see are maps up rate in running.

prospects evident and at And point, Our out scores NPS residents our this by doing, we've SmartHomes. rolled like we're the what continue increase. to XX,XXX

close that getting up, to too. finishing we're So

Thomas Toomey

is Rich, this Toomey.

potential understanding that set depth, sales satisfaction cycles he the we Just In date. in cost through can us structure core on we've opportunity where to a things. to fail our model, the which customer work understanding and and to immediately can't and platform, group of is But and trouble I the and following hired on in you'll of to is organization. a the help more is beyond the opportunities the self-service and really because the add find and in get these areas Mike

sale, list, the And points need cycle today's online a cycle is lead actually X don't to we that or leasing truth to we're probably touch a so them example. customer figure in a in which actually of successful out touch trying times. The an but sales in that much, touch as to touch we

Mike's demographics. Second,

years seen and home But our figure and situation our offer and not XX You've holistic should data by power strategy renewal for an their because the mail right we're they individual patterns. of can customizing to and actually think. it be what pricing of tracking what see a out out each their

those examples. real So simple just are X

in I a to minutes at self-service wait think speed others and go airline for get sit kiosk, a model clicks you for to and done. want the industry into won't ability to XX interact X it service, and want be you an

down margin As things, customer because to focused think more more run learn We plenty there's we're those we angle of of and space the of a obviously think the industries about it, it. executing service and that. room this multifamily I the us. about on want of maintain ahead we it, fortunately, on lead about And thinking way in on other are we're to lot

Operator

One with of next Our from Malkin Capital Neil Securities. comes line question the

Neil Malkin

Dallas then on, some California products. you X the First guess, activity I Dallas. in this suburbs allocation capital of quarter Belt, sold and and is lot the subsequent, specifically Obviously, Sun of a

analytics to you to out out dust look What say that don't you so to about settles, want ways. the or and over So to decisions, various you longer-term to guys in and want any technology demand shake before make at are data you are have you big how moves these trends Because how think going shake big to being science, period. does going that said excellent how medium and speak. you see markets

making And any the decision? so made recently that Tom guys of sort you is to of or what are investments Joe, kind you closer move say? or And

Joseph Fisher

portfolio effectively on talked the recent by the markets margin. activity We've demonstrates about is capital how about diversification. we which thinking think principle operate, which maintain we're I the the

last work cycle. us -- think it the deploy for most create in cash over So time, investors point has value provides flow good now. and in recent it up our that's down the worked capital decade growth will you've a continuously off we historically, it and which outperform to seen the us on for as cycle almost jumping

want in they're it seeing. attracting our new corporate corporate the in say, and but [indiscernible] demographic of quantitative So reloads, hires, maintain I affordability, the as ranks that side, I'll the terms on the Dallas, relates Dallas to pack models, growth be it middle the that that ranks, that to very headquarters, the well qualitative they're

a And the that different boxes. to we So markets degree of opportunity in value do making those have high all level on Dallas. it comes to market down it pretty terms positives related those sure of creation a checks within

cannot these again, going on a But much to be the et Northern back not Overall, have markets California, margin. going forward. very on think it's bit in as California, So term, coming come restrictions little to going we're jobs though, cetera a the just ability they've do it's about thinking to how of Southern they're well think as We very respective all in get term, the basis. New their It's perform York, monopolistic it. near that had I if off. we're regulatory remain incomes and demand that and a they share comes as not go-forward a rebound Longer strong historically. industries. have they'll It's hubs of hopefully,

about more XX-year of markets are ecosystem. of some that Maybe other So and a the on stood of more performing with more in hub a or line time basis. rolling a they're XX%, XX% these of becoming

growth growth. drivers Some of these future of economic job and

Neil Malkin

a view well. as way really And this it and my that's good at I appreciate Yes, to is that. look

Turning to DCP/development. maybe

side, lumber bit understood material the quite up that it's well has think pricing a on gone I especially.

a -- you or guess, how I development decisions? of do sheet how does wondering on get decrease Just the affect balance -- you if the are potential that and harder, little price sort pipeline your rising bit seeing environment

Harry Alcock

I'll start, then and in. it's Harry. jump Neil, Joe may

more projects. all talked are developers. DCP. for DCP capital difficult, this side, are more to And On before. of lower, Debt their opportunities And for which LP of looking capitalize is proceeds overall developers increased the demand a number that difficult remains the is there's Capital of about the we've elevated. the ton

the I the However, costs. it overall and capital and as on little expect a midst as lumber, X% on economics. think of wood project. other to developers what mean, And development a lumber we're touching cost But obviously, through I in bit only is material work terms hope taking in their of on frame maybe overall we normal time is stack long bubble these and a of about a work lumber just projects it's pricing. lumber worth total

points you're doubles, extreme mentioned. as we an as and So XX% XX% project that's goes are XX think also it, even to of materials, a development And typically call it's is, think material obviously if about Other lumber total $XXX outcome. you increasing, $XXX that XX about or basis million, talking million we to cost. costs

again, XX% X% So XX%. increase or increase to materials That's cost. even if X% development in total

deals. -- in So $XX $XX you rent think increase, we that's market, month kill if a about necessarily it a overcome often it's But to which it. And it, it's meaningful. can these maybe recovery not doesn't

that shortages, material see to continue thing. of type We

start sheet development operating cost change bubbles. result tell are at long-term a we as short-term you, our projects, as But believe We costs that I analysis we our So economic project. other create a our just environment. context overall through can of we to capabilities. in we lumber we value difficult don't would on material stay a look and strategy development high, we of in were if balance the consider And can before

Operator

the W. from comes question Baird. next Robert of line Sweitzer Our with Amanda

Amanda Sweitzer

Following on development.

within a acquisitions? guidance year. DCP you Tampa? and about pipeline the opportunities Is seeing interesting go your development new optimism that more did to bit beyond Or are this add Your down to ability other projects just less

Joseph Fisher

out put Yes, even that At the spend. end, known Amanda, we all together, encapsulates we range the it's the originally guidance fairly midpoint there. put when lower Joe. range a effectively to wide up

you quarter, at encapsulates may of it will, the shadow then a there you million. we when and year. $XXX depends into that So on fourth really are of But next have third the it first X spend. even quarter, look sitting start. at that projects, half we if And number attachment out potentially that

the suburban do have hope next and $XXX California get the parcel sheet we've on in end. the we in we're we've densification about site working in balance that subsequent Village months. that So to project. There's here There's start that million Newport took at on out land Northern about, XX sheet talked a the Tampa the is we quarter we within hopefully which to talked on DC balance opportunity Alameda

working So end slightly. but a timing hopefully range we brought down other the just have number top get projects of started, the that we're of on and

Amanda Sweitzer

you trend on construction then But where overall not much. that, costs up have seen yields development what on stack year up you cost impacting does with you're either And And helpful. other that That's this in I development to pre-COVID opportunities? today? seeing rising following hear that how

Joseph Fisher

On need these already Maybe current for we lumber two that out X, the that just projects. that. Attachment XX of on things in, locked months the terms we've being for Yes. next pipeline, bought in all costs

So we do these. not have the risk associated with

for estimates, cost pipeline. cost as So existing minimis risk, see we the in de overrun terms of that

another So the I today, project underwriting and here this into quarters mentioned, X we for start X or in as not lumber point. factors prices starts, bubble that probably at future the X, really we another which, it see forward

we're market somewhere stabilized relates that look Most basis. not we're range talked we untrended in as the historically, talking low of cost. to the untrended, current we are to about at what high relative we the underwriting, of NOI X.X rents that yield. asset off look Xs, type we trended yields when As a on is an it And have about projects say stream adjusted current that in we've the at Xs of which from

would deliver look we in start we point cost at and time, forward the So which asset. at that

So course, rents X% we to and that grow the cost look and of catch expect at time, a to up untrendeds Over to we are stabilized. grow X.X%.

Operator

Markets. with comes Sanabria question Capital of BMO line the next Juan Our from

Juan Sanabria

little a impact on and give could bit color the the regulation. renewals more guys you hoping Just on

you that you had You the XX% as estimate to you have to there's do the drive have what said flexibility prices? push. couldn't renewal those would of But an had been, portfolio, that

Michael Lacy

Mike. It's basis Yes. Juan, it's points. about XX

points our been and have if X% basis would of we XX renewals. weren't higher at we XX% So

Juan Sanabria

then rate or Great. And growth. the just new lease spreads, on

But how bps that XX lease is X.X%. trended quarter? new us Or of fourth standing maybe give us a rates? momentum April the improved from to the of can any better sense that -- today, down to You the where just give the first, the through kind quarter of you for color on

Michael Lacy

Sure.

negative to these looking actually July. followed And to So I into March some then areas. hit February, we, it X%. January, by we vacancy in very March, of improving just transition similar harder X%, after start -- April June negative go again, we and some and X% negative of that, was occupancy to significantly is then July expect as were as our

going far quarter. XQ. X.X. increase we throughout for of As February forward, to rest go, about be XX X.X. basis January And as renewals X.X. XX X.X we averaged expect is was the was March point the it to

Operator

line Our Sandler. with Piper from next Goldfarb of Alexander the question comes

Alexander Goldfarb

ones. quick really Two

mentioned on that part or discussion $XX about million what maybe earlier color you or on in more in and $XX it's to initiative bit a attrition. think Mike, $XX something you First, maybe $XX time of should the savings? frame that just And million cost-cutting as million it's improvement savings referenced to we But of is think your million I that employee the just NOI.

Michael Lacy

$XX to really million relates as million it platform. that our Yes. Sure. to Alex, is $XX

Platform we this So started X.X back again, XXXX. and in

the it the of by our about would some And based as of million we're see we well remain data end $X to about fruition additional seeing. cost revenue of come from as We 'XX in come then year. savings of some increases will that science this on have XX% that that

Joseph Fisher

million is in assets. $XX I want portfolio to to to $XX we to base just that related back million always Obviously, point about add that the out, we've That we talk Alex. continued had XXXX.

reflected in So upside that beyond terms talked upside the is those and as in well. reflected in amount. the XX%-plus gets But acquisitions really of we the that that benefit true about on above that's new

upside from more even is what typically quantify. the there platform So we than

Alexander Goldfarb

is already guidance. that reflected is your from point -- the year, But by the Okay. of effectively this end in so XX%

XX% next another this into there's of year? So

Joseph Fisher

Correct.

Alexander Goldfarb

Okay.

in the Second is York wonderful rent question control. of New joy

New or passes, But your and happens, eviction legislation cause of see. good what increasing it whether Jersey we'll not you to guys with that the would alive calling think and in then Connecticut? York and be mind, and Manhattan regardless exposure So Albany, seems in well in about

Chris Van Ens

Alex, this is Chris.

me now in a it, New let a provide a just steady, real Let I'm on because to call. of high-level lot take regulatory a back couple a clear the and team, good of part over provided that which people there's I've provided want question maybe told really me negativity take I really But we make listening you year, it's people to a understand. as the lot they've I a negativity overview sure step some but York sure last a to quick and of topics positives Mike appreciated. on his of

First eviction reopening, on progress add drivers of continue et do to all, of once see but biggest it's to degrees. And moratoriums, business our clearly, our how be these performs will businesses vaccinations, while not really people focused think really to things across in good markets earnest like return we varying going incremental we work, But to And news get cetera, those. of kind continue very forward. the with again, anyone.

most at phenomenal we federal to success, but pretty talked the result pursuing of some these good been to remember, the far, rental fact numbers, lot actively a remarks, and we've of $XX process, it's that it of quarter, a of all given first AR month. have thus to application in it seen I the assistance just really kind just beginning current million programs $X.X his is, dollars not $X.X is million that. as we And have little opening exactly Mike which but in rental is is bit Second whatever to [indiscernible] really, rate local going and we've on forward, going you about state, there. think We're we've gotten application to now, last before million now, up whether really our up sure in an about, about programs local, feel that Mike assistance, hit the our be of talked process. recovered actually the California what a all started prepared Right been dollars, about from since is

that's So the on positive kind side. of

an I little And said extension But running because there. is mid-May that our would New yet. We year then to in with because under a as those place. side I York to their moratoriums. probably about rent you we're drive about. in restrictions continue people On a to up and Obviously, the We're negative for see program those looking remind growth control, we've going not operated ability eviction bit at feel now. spoke even good

really We hasn't moved have yet if to see York. in XXXX a passes New It committee. out

a where control put digging people I think been had this out we'll once understands as the on really, think, is is rent defeated. Washington, topic everyone I should be on to extent, it's got that door COVID. burner that of just control, state certain the some focused see of of the rent fact in really But bills of for kind couple a again, back have that aware more a been of success kind year of cause back And or universal We goes. eviction.

just a regulatory So a overview, going positives, York in capital negatives. New of talk kind bit of allocation that's about little can kind of Joe forward.

Joseph Fisher

factors of into briefly. one the incorporate process. just we Obviously, the really [indiscernible] regulatory is qualitative Alex,

of quant we at But qual. other some end and screen that and markets going these a coastal in We're run necessarily just one well York want to not multitude markets? maintain of markets. of the both don't New So a there's from We factors, of sell-out on the to But still to to to on lot going other look factor negative day, those factor. May the of diversification. are No. positives when these away

So find scares think certain I may supply extent data. with impact new somewhere with derivative in downs that a with we've also think To as each come of the Belt market. from you this. that's up the and one markets seen supply and second the markets of clearly, affordability the And home the keys such will comes or away you of insulate got this that diversification. from that permit as Ability pop to to capital it And else. I capital supply ups the and remember the have -- that, Sun

So therefore, don't a invest. regulatory relationship one-to-one not bad, is it's of

Alexander Goldfarb

York was rent Connecticut would Jersey rent becomes turnover on the of presumably offset New because accelerated and mentioning control, Connecticut obviously, in it Jersey growth then and apartment. have Well, their people to that's why lack New York to as New hold I

Joseph Fisher

Correct.

of York, at New look Connecticut. a New markets. take actually of do broadly. we a And Okay. subset those Jersey speaking [indiscernible] York We But and all within

Operator

of question comes St. next the from line Our Haendel

Juste with Mizuho.

Haendel St. Juste

I the XX% the I'm said some Francisco outside San go call. want by back the York some what to New comments where of are from of to on XX% and intrigued renters beginning of your coming you to MSA.

So you least I residents number guess those coastal curious are more and can about ratios that any to the maybe rent is prices broadly and decreasing, leaving perhaps be term, at your your I'm the front in across of to all if maybe coastal the on And reason migrating back markets the people short share of for coastal Belt markets? as some Sun these income markets concerned where non-coastal at on demand of any are some nuggets near-term markets. then you

Michael Lacy

Mike. it's Haendel, Sure,

questions. last so can I I'm just those one. to start with going First, the remember

our on strategy and still hasn't gross XX%. you gross really really number. concessions. based high income was if rent And around Our a And It's moved. rents to recall, we screen use keep

nice that of So on stabilized to it's been front. a kind number see

coming and occupancy are of terms In move-ins we're demand, of and move-outs off lows. some and the still pretty we with where big

some I've higher to current And again, has go has still the Demand it markets telling XX-day last improving, of But those in than weeks occupancy. that has are of things harder-hit a York you I'm been little areas. referenced very a X we our New been X promising. these ways earlier, trend stronger while So than expected. had

to rents now we do. So can we're what pushing actively see right

Joseph Fisher

Haendel, it's Joe.

potentially know question, coastal just topic the in result out on you embedded was see in also cycle your everyone of early in jure cities. exodus I think back. power de migration to kind going I that mass of Sun pricing urban the the a to is Belt, as related risk

been there's research place. the A to to think really stayed done lot of within that didn't those this proves enough take simply markets, individuals suburbs. now the I point at home, moved moved out that

not terms risk Belt I'm there's Sun in So of sure reversion a trade. to the

near-term for what's really and the to it employed, Meaning different reopen, surging will, driven take gives think kind the the to individuals I At seeing to going power I have Belt continues, it the it performance like continue and same maintain states think reopen, which in will keep Sun the get relative which come we're us time, way of operating. We're as keeping plan those pricing of long coastal that power. demand. that pricing you the by place looks game was occupancy coast we're going a those going as back and the today, to rents will to outperformance. and cities get

Haendel St. Juste

Dallas where Boston buying And that compares interested and to selling California. another comparatively I upper guess question Dallas. what's that in curious of as to bit end that intrigued guess how your opportunity a York, potentially like you're more capital then the New existing are at California that. markets? what you're appreciate is model. curious in new pack I'm in get I'm a more contemplate to on guess selling I I'm the that allocation. in take of I proprietary relief curious a And there to places you're middle pockets in for on it I twist on some what in I'm more guess or invest you of out of today out and capital I or Coastal that IRRs ahead. you And the would you're supply really places underwriting regulatory

So here on, just in like Coastal again, today? and attractive on investment seeing California, your places you're New like Dallas? then places the thinking that's York curious And Boston what relative model to

Joseph Fisher

Yes.

year little higher so, for and within some a gives the actions screen sense quant think a our process. or of kind if price bit I you what look of qual at our last you over is

continues Maryland, well, Virginia, DC, to to be screens so Baltimore Philly Suburban adding So us Northern screen it well. seen

market that Tampa, go to has of we've added number You a down where absolutely assets, fire and on for been us.

it market screens specific ability and deal extra market. you in a There sense go. for kind advantages at But does a given where the have, look really any outperform We'll that gives it competitive deal XX%. pick come of to average, the is to what the So down well. we up ability no to matter we

the myopically lost, always So across we're focus but is entire I get want looking value. team on X portfolio don't to for that opportunities to only of markets. our here going XX to The create

anytime that soon. see So I don't dissipating

Haendel St. Juste

on Any that. not Or is Appreciate color comparative IRRs? that available?

Joseph Fisher

And we our outperform markets of to a we'll underwriting which just those could baseline the a growth, underperform independent mean, at gradient we'll when best for Yes. it analyze market and where and I typically, of X% scenario it that looks we worst utilize then do in and terms is. do numbers. comparisons, think market forward

differentials rate come profiles we analysis, assume similar do the when the So your cap that primarily IRR in ingoing IRR we long-term growth that in through math. given

the and steady and on So that at the the IRR forward. years, you from you're into there range point you X.X and growth for then growth a X% then saw X% really getting outsized talking about or go selling X first up growth and X.XX%, around X.X% buy get a

between call XX up, picking points XXX definitely the to the you're spreads IRR So on basis it, and buys sells.

Operator

from Zelman. with comes question Next line Kalmus of the Alex

Alex Kalmus

You was a you stream you discussed into have and the at lot spoke I space. obviously, forward? Gen about all internally. And revenue guys if this technology a that you're potential curious that's guys is have going ancillary developed program Next licensable the

Thomas Toomey

We The report be continue and lot say might IP challenges this. licensable replicated. any continue look that of the of that as piece explore will but at that -- And is majority vast later. it cultural to can a as or I of we'll it well be implementation. on to

Alex Kalmus

quarter the Is trade-off of there competition The some this below more one. that the have of Or that little rate the deals X%, return quick upside upside? the market dynamic, you had pressuring a those sort average little other DCP one And a lower it. in Got was around potentially for were there the participation. the spreads? past return because for

Joseph Fisher

Yes.

is equity we've you our about best. may desire work ability and the to bifurcate I of expectations talked with at think what on their partner when historically look those, fit

these the Things COVID assets or road process of financing. flexible XX-plus the percent we're of in of XX%, to the say, on at back do of for And fixed gives at as some a little capital a through doing of call going end. down So business, terms lot and towards a coupon or lower way Ultimately, and participation. on higher get as pretty end excited location economics then these cycle. Harry in in typical IRRs back program The more terms you talked LP the are better. XX% these, underwriting cycle on us fixed, are our I'd deals timing a today, about We're XX% of a a XXX% that event, pre rate it, like look as and end get optionality think, deal. ability capital we back-end which come up some to handful their back development but own was have it a know have given overall, we'd gives participation. earlier we I XX% us our the the coming of bit to about of more as those the they of participation, a early the them as optionality, in versus each well difficulties should the maturity. reflective terms to That chance structure typically of

Operator

in to and call back the I'd no are CEO, Chairman the further hand There queue. to questions Mr. like Toomey.

Thomas Toomey

can cycle. as thanks some ran this our from thought it in and and very I that a see was Thank about forward UDR. our you, beneficial. but looking today you today, talking business Certainly, closing, you more And execute time results your operator. just our we're prospects for long recovery quick interest very excited to recognizing Again, on we tone, comments in with we little

take please that, care. with so And

Operator

your this today's teleconference. gentlemen, for conclude and Thank Ladies you participation. does

wonderful your lines and this day. disconnect have at may a You time,