NXRT NexPoint Residential Trust

Marilynn Meek IR
Brian Mitts EVP and CFO
Matt McGraner EVP and CIO
Robert Stevenson Janney Montgomery Scott LLC
Craig Kucera FBR Capital Markets
John Massocca Ladenburg Thalmann & Co.
Call transcript
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Good day and welcome to the NexPoint Residential Trust Inc., Third Quarter 2017 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Marilynn Meek. Please go ahead.

Marilynn Meek

you. Thank and company's Residential quarter results XX. everyone to conference ended to the review for welcome day Trust NexPoint call September Good the third

the President and Vice Investment Officer. Mitts, Officer On Matt Chief are Chief and Vice and Financial Executive Executive McGraner, today call President Brian

As this being call webcast website the company's a at reminder site is through

company's the Additionally, available for is XXXX supplemental Investor section a Relations information copy of the company's website. of the review quarter on third your

to Litigation remind expectations, looking are like this of Before conference meaning forward we would management's assumptions begin, that contains everyone statements of call I current XXXX beliefs. on based the Reform the and within Private Securities Act

and statements or should by expected for words. be computed operations the can non-GAAP Forward-looking FFO, NexPoint's or full as measures Core year variations such include, statements financial also forward-looking forward-looking negatives Except funds expressions complete revise used identified They guidance words risks These and for FFO, not acquisitions of substitute and These strategy regarding with but these any and statements expect, and operating as in core limited of supplement to, or for anticipate, are The analysis forward-looking as and which of also are from dispositions net statements. or property operations intent, similar XXXX. and discussion results other are of net materially any all not could statements. encouraged undertake to to not undue income should by be other and on company's are place funds operations results more subject a does accordance publicly and cause could statements company's funds SEC in actual with or of non-GAAP GAAP. NOI on performance. assumptions differ and update from risks, AFFO, conference not a uncertainties, filings XX-K to Report to and affect that a those forward-looking statement. the review call from Form that of expressed obligation law, reliance any Listeners recent future to financial are the any most not the forward-looking from guarantees for results the measures adjusted or factors includes income NexPoint loss, required Annual

Core a of For earlier we more Please filed release like and over see Mitts. Brian I Brian. now complete call earnings would discussion the AFFO, FFO, company's go NOI FFO, turn ahead today. the to to that

Brian Mitts

markets. Marilynn by Brian third you Officer, the Mitts, our our I'm joined Thank Officer. Chief I'll Financial and quarter XXXX everyone remarks welcome our third kick-off conference NexPoint Chief over by call. with to Matt it McGraner, go in highlights Investment quarter of to results, through portfolio, I'll discussion QX reviewing quarter, the activity and Matt from turn detailed third for our prepared

Before that a been me the about that of business a spent and we calls, I years, more we year. a We've the left two let and talking quarter -- take time details quarter talk just lot of bit. now do -- on about think I and in kind next earnings we and public the the bit maybe -- step about these little little half a next back

we've to thought future quarter half a take back at might this put kind and here and So, some this years, in in context. maybe make we look achieved the two sense quarters it what last a and in step of

equity, tried We total We've felt put quarter haven't we opposite. XXXX, we we've value or back company at on repurchase where XXXX, think to plan, We since a as We our share the raised transparent So, We either in organically and actually took to the first is that. of done how IPO be $XXX market about April were the was highlights. public by we moving approximately since. grown those very trading then million of we at shares. what some a times through any the done which significantly third bought as about NAV. instituted we below NAV XXX,XXX

since NAV we to with be a increase we paid $XX.XX $XX.XX, XX plan. morning, So, dividend the that's the first we've of been that's pretty of midpoint XX% did our actively NAV so as months, had $X.XX public, Today, return past our approximately combined in that. in $XX.XX. and using our believe disclosed went went that spinoff NAV When in at the supplement buyback public, we're we proud we at the the midpoint we this we out

Our shareholders have share went through received public, price increase first we dividends. since yesterday a plus the return XX% -- partially XX% that's

we think that's we we no this delevered Again, and yesterday other strategic period, equity, the We've back of for raised our when performance. than a acquisitions since utilizing brought we We we during decreased public. sheet did very capital increases first XX.X%, purposes public, as XXXX as facility. and temporary So, stock. we largely going strong recycled reverse a went balance dividend raised [ph] bridge exchanges,

continued on are in program, same-store XX% rent from X% of quarter good NOI and positive leases in our achieved the achieved We've is forward achieving hope these size on of and growth this leading And X.XX balance disposition company we've exposure equity in of [Indiscernible] We invested of we capital by strategy, debt XX% debt, tax consistently higher flexibility on we dispositions utilized rehabs given growth XX% So, recycle investments which defeasance way assets. in long-term investments each -- our important prudently X.XX% is our do levered on on achieved plus these value-add cost. replacement were that not located producing units. this achieving think and these interest we rehab debt, to-date. that through manage yield quarter. times and dispositions through debt the maintenance the while as IRRs and a value September new long-term think the on capital and our We've of this returns interior and have or multiples the on group of average to results our peer consistently results the really of equivalent structure. achieved our floating-rate fixed going provided for we sheet we a investment efficiently rate better year, our we already continuing capital think rate it benefits think The XXth, of it's quality we've

heard has on rent that markets, and upgrading our in Freddie same-store for concessions we're to We I good Because the over while, outlook NOI supply now strategy higher for think We on results and workforce, in on speak this affordable from the of believe ahead. the job of years focused peer report different the Common We were deal for quarter It think household that there is a call growth formations So, past markets of lack focus his been in and We we growth our sunbelt deceleration. are in a themselves. results other some housing theme remarks. three Matt and on opposite major multifamily case in we prepared of where very recent our challenges tailwinds show than in we've we assets to from that has think Mac most challenging rent ahead. the older program. the going earnings of acquiring focus were the housing and lot our achieved strongest, has able will of this as worked detail group are road value-add see we well. through well-positioned and think by supply talk -- Supply remarks. markets things. think his Matt's the quarter. a things affordable that's aggressive think each very in many REITs which we with we touch highlighted sub-markets about in the

get jump with current let's some the into back So, highlights. and kind that, of through the of quarter

compared we this less the quarter. think we noise quarter than As last last quarter, created much activity have to in

First be mentioned. that but something should thing really not start-off, highlight,

other think have multifamily the REITs their about on been I talking calls. all this

in multifamily they Florida, some some damage to impacted roll Rico, their point As areas. have the that all everyone earnings. caused of that devastating this to in peers massive hurricanes Puerto had properties and pretty year those significant Unfortunately, the many Texas, of pretty we some our destruction reported knows, through had

despite was approximately earning which South minimal Texas, for $XX,XXX. units us, in markets, Fortunately Houston damage, very sought Florida we markets,

unfortunate situation, to So, it for turned not out us material. but to be

this XXXX was kind in for decline disposition The $XX.X oil this about originally of energy city That's of for well second this, this prices the of located area and started we the in experiencing We wasn't Houston. the in Regatta to more this talked purchased well. asset some million. quarter, petrochemical it we item performed southeastern prior general significant asset the the pretty November started was in in in Despite around headwinds. quite Houston It calls that sector saw unit energy rate us. historically on and of did quarter XXX Bay, part

which As invested million, levered a IRR on July to multiple the capital. gain, times we result equated X.X this million XX% sold for $XX a asset of $XX.X and our

as item third Atlanta or in The refer value-add the portfolio NAVA. property portfolio the was Atlanta North disposition that we of to four

from that a XXXX, continue a Rockledge which gain, Atlanta Rockledge sold any we September So, quality portfolio a October X.X of levered northern in we Atera minute. QX. IRR and our originally it acquisitions talk multiple did which for higher approximately make on capital. We in XXth, million, the large the we units a XX our last made -- of assets to XX% I'll a like $XXX But as acquisition in for equates quarter $XX.X didn't dispositions recycle about of second. talk June quarter. Four, part of times asset first the part we proceeds October, of million. recycle month continue of in and into million I'll better in in acquisition the this invested on last this the XXXX about purchased We to finalize located capital, we in just although day to And in $XX

forward continue dispositions asset Matt proceeds and exchanges Atera tax on the these talk cash Ridge and more hand will We and to KeyBank acquisitions. facility comments. And utilized efficiency as we our XXXX for of his strategy utilize fund the both as about reverse in acquisition exchanges the well and to

our the this that been quarter. used key we the well venture our buyout the pay at the interest, We of quarter bridge Rockledge of acquisitions to of proceeds, the part of to program. we down facility also $X.X quarter. approximately down $XX as used have joint continue repurchase pressure of of end item the used we utilize the to to under that million BH fund end The the is sixth The million share had. interest proceeds as second We that paid sales as stocks

are we in where sense was. So, where given prices made thought buying we market the actively our the thought NAV we

So, XXX,XXX we quarter mentioned, $XX.XX. repurchased of XX,XXX as repurchased of an average price inception an shares at shares at Since price during average the $XX.XX. we've

So, original from in quarter we accretive increase dividend. purchased and It’s the dividend mentioning. We we to give end of think XX.X% and a mentioned that's in that for quarter Seventh agreed property. per yesterday The property per is you per share little post very went was this Atera item, the quarter increase had public. acquisition also was will details $X.XX Dallas, $XX.X to million, quarter, The end, the when remarks. share a to per from last Board which XXX-unit but we to represents on it worth his more increased Matt increase XX.X% of $X.XX capital. $X.XX use subsequent item a

for diluted XXXX of is year. $X.X quarter share per the diluted what $X.XX versus the million last two $X.X been versus was $X.X So, third income for and quarter We let $X.XX share third shareholders also share move is gain third AFFO $XX.X XXXX. $X.XX third really Total quarter we've the $X.XX quarter, third it million or great was in share. revenues million -- $X.X million another of per was on me $XX.X versus the the million were share million million versus million third in million the versus million XXXX, Core the for results. XXXX. the year. sale quarter largely NOI, which per by which is quarter for assets. million XXXX, million the $X.XX quarter $X.X per $X.XX diluted share quarter, prior XXXX, $X.X driven prior FFO as FFO for third Net to same a XXXX quarter in of or which in differential to per was doing the the the $XX.X was years. $XX.X for $X or of half quarter $XX.X with compared line common think to for

rents last at quarter numbers million million same-store $XX both occupancy continues as XXXX, Same-store is Same-store was third far increased by As $XX.X XXXX the XXXX same driven represented or flat was versus million third the for X.X% which quarter taxes. to for quarter. X.X% year the $XX.X same-store revenue quarter Same-store in for the be XXXX, versus $XX.X the for which for of X.X%, quarters. XX.X% primarily quarter quarter increase third were third increase. expenses real estate million an versus

portfolio per unit post for portfolio. increase Rehab in return partial third same-store completed full X.X% in X,XXX to NOI approximately We've And rehab we XXXX $XX.X units of versus was on the the To-date units. the been quarter this among an NOI on third we third or Rehabs own, XXXX, which XXXX; XXX cost for $X,XXX. investment on X,XXX believe be average the that million upgrades. representing peer we a has XX.X% rehabbed million rehabs rents we Our still quarter we quarter our is seen that units. completed the $XX.X highest group. XX.X% for on the same-store increase, on

So, in value-add well. growth we much feel continue intact storage; perform very and great quarter. Same-store our opinion NOI very are another to and

over the the So, come questions. his and and comments guidance year, me markets to let and remainder over Matt, talk turn of we'll it with for our about our turn the on for back, then portfolio

Matt McGraner

of net Thanks Unpack partial received We on results per Brian cost on real and completed value-add quickly And complete eight here. partial XX.X% full next renovations average to $X,XXX on of mentioned, as XXX Atera capital the Brian. units and full remaining we quarters. another have over average rehabs Including of pipeline and $XX of the for an unit. quarter now latest acquisitions, increase a updated ROI. Rockledge X,XXX interior the we

would we expand the rehabs, of and scope residents, interior to additional existing to amenities addition In opportunities value-add like improvements. to include other

Phoenix affordable investment valley Green is on innovative had Freddie, of that housing want that recently margin this through also these by on ROI heads, Advantage of on net on an and lost, to replacement XX Revenues received $XX as to estate We've at I per per basis the $XX increase again, in Florida XX.X%, points from been Nashville in on from for by include here had and approximately and and another $X.X premium also XX.X% cost these XX.X%, interest previous mention, about to be same-store a in million XXXX. Not implement. energy sustainability XX% believe implement style And it assets. The these real be investment. largely about and completed in the we've calls; to constructing will Nest sewer Freddie modern escrowed just Unpacking introduced growth get per we infrastructure. a Charlotte of $XX trash NOI our the sequentially XX%. a through over programs in of rolling we toilets, implementing which these yet efficient NOI in We're about $XX NOI, Mac month years, an -- program, in XX% Some insurance to the pick-up unit on participating X.X%, a taxes to plumbing we by investments talked the but discount We is X%, mentioned, updated each property initiative Metro reduce Thermostats, is then up to speakers, to water and an yards least our driven a of at average Bluetooth last Learning We X.X% unit This average will capital. the to Bluetooth from the technology one is We've per cost we for quarter $XXX promote and improve summer packages designed with improvements those XX Brian quarter. of the smart increase water June. shower increase the that get and Atlanta, growth, and XX were return we accelerated in a varies, for at locks, or also mention achieved finance shower Dallas, cost typically XX% X.X%. of our XX.X%, XX expense asset by we stabilized important, private other $XX quarter moderated improvements then month, last points X.X% basis communities, X.X%. garden couple the but market, our upgrades. energy properties, in DC fixtures, not by expenses to cost we month

front, Atlanta, of new quarter had leasing a strong Orlando X%, the of rent we growth better. Nashville, We or growth on had very and X% quarter achieved leases as during approximately well. the lease new On of each Charlotte,

South X.X%. Florida X.X%, Dallas/Fort X.X%, Nashville Orlando is that Worth at at and X.X% next led at

the X.X% strong Nashville overall the at seven far of least renewal very in averages our the increases in highest X% well. front X.X%, we of achieved remaining nine On markets also quarter, had as portfolio, across as

On which the rise reducing led and gains strong focus the we portfolio revenue the front, quarter, to occupancy was a occupancy increasing turnover during turnover particular saw.

immaterial relatively to Brian XX. September properly focus up we're we the activity and months give our summed on Harvey the damage storm. from hurricane-related increased pretty post -- retention XX.X% pre of leasing an sequentially well To as update Houston, as results. think and XX.X% the We to on platform. with renewal suffering month-over-month aspect unpack the it's important our mentioned August, Our this the XX% to winter enter during we in in going averaging quarter, July, continue in

portfolio three leasing hard first And XXX were it's weeks over their many a month team front. the front, for market storm, easy the and positive our for couple we rental BH occupancy flat. new during Pre, I too into to opposed has First to the on to the aftermath and quickly give we move negative as Like serving two everyone for to the of prior as time storm modestly occupancy occupied past improved Stone post in the approximately the all, lease of equilibrium, September, of froze XX% product work A our in properties an and dramatic in the new last leases operators also some over today. the the how our sense tenants. a of Class dramatic great seen newer increases them. have months across October, weeks basis storm wanted on not well. been there renewals down Creek are fairly of and thanks leases the flat impacted surrounding of rates to of we their approximately in leased thank XX.X% as velocity up dedication; our loop, up The our renewals and Old improvement two seen has Harvey points the And were to Farm portfolio. assets the interior

proceeds, The approximately we portfolio. originally Brian sold completed portfolio on impact for XXXX capital. sold of mentioned, our recycling asset generated exchange, $XX doing and As levered positive. nominal the X.X% all, when near-term economic sold reverse free surrounding we cap Rockledge portfolio $XXX.X Brian we $XXX,XXX the at September in out of to and in disposition the of $XXX,XXX on a as We one on To storm. approximately continue million to the result of yield million X updating We NAVA million of the June. paid X.X the so, IRR $XXX rate to [Indiscernible] XXth. as X closing been In activities, we mentioned, the debt. before investment expect purchased X, months on initiated XX% be which the total short-term concessions a from That offered gross that multiple down reduced in and of builders invested the has kind merchant that our topline by QX areas, capital month, revenue

consists gain the lower Rockledge a Northwest -- initiate used the Rockledge of cash-on-cash sale forward of asset investment -- portfolio to cap units, going a investment a apartment rate million a in of original Community to the the cap in $XX million XXXX XX%, initial $XX.X superior full as Apartment NAVA at in XX the albeit upon is profile. at in yielding recycled quarter, into located with today million into for land Subsequent Atera Mac economic the the of we land million dramatically exchange. floating plus equity from -- the as expect rate. from location year equity LIBOR mortgages additional Atera store. XXX leverage to to funding Timberglen, purchase NAVA of the portfolio the a Dallas Freddie of features the purchase north source in return $XX.X is in Our rise now acres X.X% neighborhood Built X.XX Exchange one per to XXXX, be Tollway value will quarter-mile increases potential The a the square Park than structured was approximately the to the of Cedar which This intrinsic Foods $XX first less and which increase the of and and Highland with reversed potential Springs. [Indiscernible] intersection earnings of XXXX proceeds foot high asset asset. in price its from rate site optionality the capitalized future, of for development the We Whole sale grocery $XX.X density the in

offers a a asset, yield approximate to the invested XX nominal sale capital. Timberglen, investors -- won $XX levered XX X.X% contract XX% year. the [Indiscernible] ran and on IRR on So, $XX we sale and the to rate, cap we XXX,XXX awarded for We a times who returns X.XX recently process -- deal of next at it's stores, in expected close million the At marking buyer to last January had sophisticated received price, had full we we week a sale. would of million, multiple the

the of all the These to really examples of continued are rather a retire KeyBank -- capital efficiently markets, our in example sufficient that. $X.X million Ridge our enough and successfully core a addition, will plan Atera recycle examples left well-located the sale recycle on generate to capital great prime In land into covered assets facility. the is

of highlights here, the details last of quarter. mentioned as included our we've a Some the the most highlights transaction significant in call, sub, page which we quarter's during and

addition, our and run which builders of capital ratio payout REIT dividend to obviously, XX% for disposition our on dividends environment FFO. a And X.X%, elected acquisition FFO believe Core as XX.X% activities an teams This dividend QX what tenant closer quarterly approval highlight do focused to X offering to consistent we free types, healthy preliminary a in payout and demising to the a CapEx, notable continue peer three and of we always which In a cost dividend. the in our and growth rate discussing story, XX% represents XX%, of our just of do months the pressures, XXXX will of double-digit because to we to believe are Hurricane-related it and being increased Last its Brian been growth were set term another and mentioned, return billing, narrow can recognize on it's in in management walls The can way the growth. NOI total XXXX. XX% of way approximately target amongst continue or yet XX% Board to our lease, increase longer we heavy progress in property amidst our to mentioned Core extent shareholders. core our which We've merchant in year, ratio and annualized of be NOI but do of best. estimated increase we're FFO estimates XX% a return group, lease growth minds supply defensive the showing the to bankruptcies posture in subdued increase the we same-store Board's demonstrates healthy earnings our is --

annual included continue on affordable And under-supplied in units of to the in markets is believe quality recent XXX,XXX that study. by nation Mac number housing Freddie XX% our dearth must that basis. as of We of as by evidenced an they there a of -- affordable. We're

and continue -- this our provide this on cycle, environment. but delivering in investors. any while particularly focused these return outside a We we're base affordable thesis is believe to during tenant our relatively investment housing market strong So, to operating to

to want a teams during quarter to and in BH team deal for with, Florida thank the Lastly, I lot our challenges hard execution. Houston did work were and head our those job at and great storms members and on. a of particularly and NexPoint There the meeting

So, appreciate for again. all I And have that's it remarks. prepared

Brian Mitts

Thanks Matt.

quickly we final tighten the and updating increasing part, for me go as guidance before quarter ranges Let turnover for we into our guidance. revising our go questions. to through and We're most we're

high-end mid-point midpoint So, for a on approximately which are low per in on net $XX.X $XX.X FFO for of midpoint penny low-end, on end, disposition prior million on of we towards $X.XX low-end, the $X.XX, for $X.XX we high mid-point the the activity, income approximately million the what high $XXX.X our side $X.XX, the the don't a a end, million $XX for $XXX.X $XX.XX midpoint year. Acquisitions than slightly as basis and Core $XXX guiding $X.XX we million a $X.XX, for high prior in per million quarter. revenue, increase which estimate the on is share slightly midpoint at here, over low further for FFO we per $XX.XX dispositions, for and $X.XX compared over side end, $XXX.XXX $X.XX the approximately AFFO increasing of anticipate midpoint low as we end, the any million. $XXX.X higher so the $X.X end end, million, on the estimating the increase there NOI, million midpoint. $XX.X million at is diluted million is end, on share on $X.XX other a in per on share acquisition diluted prior end low million, prior the Core in high to prior mid-point $XXX than our same share on million million mid-point are $XX.X so in -- guidance. on which end, higher and million, $X.XX at of our guidance. prior we high basis than announced the diluted

that So, prepared our remarks. with concludes that,

turn So, at operator the time I'll it to this for questions.


Thank we'll Stevenson question you. take [Operator with Janney. Instructions] And Rob from first our now

Robert Stevenson

earnings hit Is are quarter? Good in non-recurring expecting to fourth there morning that guys. wise you guys the anything

Brian Mitts

Plus or minus?

Matt McGraner

in was No, as third mean the quarter, damage minimal. we mentioned, the hurricane I very

that's really only there, So, had there quarter. is the fourth thing the nothing that out in

Robert Stevenson

redevelopment where to have returns on any or -- Okay. halted And certain then activities decided either where markets aren't the see seeing and start you to you you projects? today that want not

Matt McGraner

throughout recently -- assets, acted a started so Beach, can the situation and monitored as the DC types and Dallas accordingly. been on where an the was still the that a we I ROIs XX%, issues Tampa the on asset Atlanta seen. we that kind labor stop Orlando allow materials We rental Palm topline. back XX.X%, strong. have getting we growing just $XXX averaged we're that's largely ParcXXX that's of of West getting We're tremendous the CityView the returns mean increases, to. in XX%, that's see the We're that the Houston XX.X%, used are the quarter XX.X%, still you but XX%, getting lower example gains, we've been getting restarted very and while so we -- XX%, lowest Otherwise kind very, we've halted of Nashville

Brian Mitts

markets Texas rebuilding. increase with far just the the probably One monitor thing labor, going on is and Florida, as given what's you we'll could an expect do in definitely that as

and that So, sure we'll make we're appropriately. that acting monitoring

Robert Stevenson

vast Dallas or markets additions a Okay. two being you its mean you and how continuing of would And I the $XXX portfolio in guys of portion similar problem you to majority to in million concentrations portfolio? all equal, those about asset take these of are -- have are -- then any days with representing thresholds? next the such like are thinking guys with markets, or other the represent large are return guys more likely deals Atlanta

Matt McGraner

in NOI just think out. Atlanta, pretty markets, of XX% We and Dallas I I think two full recognize we the to expand latter. But happy those the are with. Yes in need they that we love we're incredibly our strong. having markets and

that's Charlotte, to doing So, in so in continue on you think where that's we're Nashville, I us South concentrating see Florida, -- more look.

Brian Mitts

Dallas see last acquisitions, our in is they and which you when Atlanta, really two were with swaps. And

deals and just we out exposure, all we So, think the way swapped kind didn't actually increase were through the were what program that into. our of we swapped what to we inferior

Robert Stevenson

there your -- I deals there come of Atlanta market on going over diversifying? you is mean, that the year in from next Dallas be other higher desk, see that you at anything would take and markets the across suggest the prevent that when those would returns and that look deals on markets your than a you would Dallas that

Matt McGraner

to check, a and in certainly completed I i.e., both allocate or $XX check equity the was million There's less to so. to lot that not million do checks for one $XX close and the what the close Timberglen, example order Rockledge $XX seen have amount -- having Yes, of Dallas, also can value-add but market just they million we activity. the is $XX was with I in can capital of we And tent, is example to betters continuing like Atera to acquisitions that Atlanta, mean -- think respect asset is and to million on offers equity the can goes us XX of is [ph] Atlanta write those example, people efficient, two same in in for in liquidity lot -- so. want recently value-add in we you've where excuse that think prime there's with of a Nashville, me a to

continue those million $XX deal, really And $XX it's the two competitive markets. really, on the to will to in so million we in asset, single but size, that focus

Robert Stevenson

Okay. Appreciate it. Thanks guys.

Matt McGraner

Thanks Rob.


now we'll Craig Markets. [Operator next Instructions] And Capital Kucera our take question from FBR with

Craig Kucera

Hey, XX% from sort the there's good commentary units garnered are of out and that sort able Appreciate be on the that color typical is where about and morning do value-add. years? value-add few of I the your Atera next guys. property to the of a to over going take you But

Brian Mitts

per all so type in dealings, in appliances, be touch. there a than value-add, a the $X,XXX but of returns newer cost getting from of of unit. type type a the build at typical do to partial it $X,XX] on albeit a a We're so still spending Yes, more capital, same would lower have probably it's same anywhere doesn't heavier upgrades be the will that lighter

Matt McGraner

still But opportunity. a of lot

Craig Kucera

$XX.XX, nicely far stock too your from not right decided price? today, trading is the we're sincerely clearly, back in And you and if but you time be when can buying market, stock the

Brian Mitts

XX hours.

Craig Kucera

but process the kind I first And I do the are we I Southpoint getting you on sure it. sale that or of if the anticipate wasn't where dispositions, missed marketing Reserve, Timberglen, appreciate Got in on quarter color far sold of in as something the there? as your

Brian Mitts

this Yes. last the quarter was Albeit, We're I continuing XX% it to NOI, still it. we're than mean third quarter year. grow alone better marketing

we're So, double-digit achieving give to it in And away. increases NOI. going that we've not been

months it decision the returns hold the So, we'll of couple out we achieve probably back can in and it those will make a to potentially to over kind spring. next take continue and extent the it

Craig Kucera

about new when Got have part has think -- be a some I of longer goal capital that assets? that you're do you know maybe enters the you think big going it. B where are term in assets, but capital, deleveraging. into recycling extent recycling Does or a point a think that at I conversation large these And of I to a to you been the selling assets, still strategy mean we the

Brian Mitts

we of that you're deleveraging. incrementally two I there's planned on announced realty quarters, activity, June. seeing now the think lot and we're What in a focused back May over but Yes, last and stuff

we been having I of going have delever, -- we that we doing behind sale we time now Timberglen So, which the were said on on to everything that and us, we've numbers doing with to incrementally executed then the out, having more. we now put think will ability clear done a and we do have and the

Matt McGraner

when hard buy of kind it's to using through see on levels, to we doing but kind what do the less that buy just get the deals the activity, at these versus we're on for reverse putting what of XXXX, debt we're exactly Craig, we but the sold. the we do we Yes the sale, property property where to -- from

over of see to the kind higher you'll leverage having of time through down. the So, the start first come facility is noise that participate, leverage

run rate going each a lower should quarter forward. it on basis, be So,

Craig Kucera

Got it. jump in And from back last I'll me, one the one queue.

couple do Just XX% you've renewals. to want about to far do circle months, back it? focusing if on increase renewal your every, and How commentary XX% to you're on over how of your gone you kind X% what savings think from say think -- can does in of a you you on how retake

Matt McGraner

time to that now get can unit to a to continue the also factor later in carpet, the and a one to will, think I incur number have the making where you not quarter only days don't rent expense, if term renew impacts our it's that to with back biggest of the opportunities the and kind you We of point of BH on showing clean third it's -- have. that residence, financials. sure we the There's can focus we made door, because along you it's turn vacant.

ability we so our a get to in to them think tougher It's our opportunity, this And happy we're the renewal move renew keep five although points I in to it's of extremely still general. three getting point increases, X%, still getting more rates. of most residents healthier and X% percentage -- I X%, have current tougher peers, and think and I cycle, at particularly dramatic think important,

if so can topline them better. we largest have on that the the one it's to we opportunity the all think I positive. But keep here And

Craig Kucera

Okay. Thank you.


we'll question from And next with Massocca now our John Ladenburg Thalmann. take

John Massocca

Good morning gentlemen.

Matt McGraner

John. Hi

Brian Mitts

John. Hey

John Massocca

would looks and kind portfolio, buying that the in assets and you expanding would to altering you South exposure before is to like look to mentioned exposed more and how some in in of of look or the that particularly Dallas kind the market up like markets Florida? existing you is B Atlanta It So, or in portfolio or high your given there markets the concentration newer just to less competitive class places like pretty you're Nashville

Matt McGraner

Yes, latter. primarily the

lot our any of are really and Florida, these, doing markets a concentrate think opportunities, I our where radar are work markets try there. to Charlotte, Atlanta markets actionable new We we're don't in type we have expand concentration today, this but remaining where located. of So, -- already of South Nashville, that Nashville, on

Brian Mitts

were Houston had Yes, exposure roll mind, quite we've bit, back XX on July, the of last keep sale you Houston months, notwithstanding three a the in increased our in market. acquisitions we the in our five if that

significantly. one pretty So, market increased we that's not a but new the us, for

John Massocca

asset Yes, think some same-store increases. that's you know, you look moderate of makes kind current to claw that portfolio the some kind that the for also you with the same-store you back might been when asset, Houston in purchased would the you portfolio, that your you tax both can is sense. I Houston have talked of then be of there How and successful way those with not that? portfolio, And something at increases, tax

Matt McGraner

that's We're negotiation litigation the we're on in in County in been values. dealt we've lower or Tarrant but with, we're is, settlements particularly, actively answer guess I either still on for county still Dallas, -- short working that municipality the it, most or aggressive

county's resolution So, We of in think little we're still Houston still track see we're what quarter the it. we'll working and we're see previously the that. be how think given going is regard; now with fourth that have same [low], on how that, still plays to the Houston be deal most have on then out right and but to but working hurricane-related for we issues determined, on that for the discussed. we we

John Massocca

money or at lastly, either how but you the stock know to more off go in decision back versus buy your deleveraging talked you the recycling, to I to balance earnings Makes sheet, some guys you sense. process when that on buy the what's kind leverage back retained about impetus stock of delever, about take utilize of kind of look line? the possibly the do context maybe And then capital given

Matt McGraner

calculation. where start think it's capital, the that, at NAV we of stock pretty a I'll it's versus buybacks accretive we meaningful if a with way simple the look trading where is think think and discount, stock's that's very use I I is

terribly our it's think a I a company side, of and debt highly as as peers. our in larger growth far for unusual doing As more levered company, size our not some

and we the use we to not leverage quite although buyback what and think $X million. that's better true to primary think we which of value not concern XX months, as months plan and get view on not ability down to as and NAV -- actionable day-to-day we have stock longer it's term buyback frankly a course is a the a over XX our of been have the So, we our is, basis down, about capital trades spent

not the and million [Indiscernible] -- with $X leverage what are do needle. you move it's plus to So, going

you think what calls It stock back and about accordingly, needle do it earnings million add? shows the have anything is -- moving actions you capital but regardless of least. discipline but and during I of kind meetings a buying that's it a significant. of Do is about talking think $X to the willingness to the how do, allocate we at in to

Brian Mitts

how pay of doesn't flow think that's X.X% it good accretive for we're price -- capital shareholders amount allocation and decision great does the use a and NAV? get -- debt, down affect we're enormous possible? large as capital the generated we quite it and don't as the which basis and stock affect think of high that affect add of How it that's relative of on would owner a just our pretty were cash decision. I delevered, way How does can we obviously, but not how keen the Yes, that we comment, to it our about capital every allocation does free

Matt McGraner

I add. mentioned to NAV approximately the we've And one since grown comments last public In thing my been earlier XX%. we've I'd that

part quite the sheet leverage all we when fund out that notwithstanding bit. and to again fact into between the our plan take was these the and a a grow lines gap sale, buy So, we delevered along the by and balance to bridge large of

John Massocca

That's me. All from right. it sense. Thanks very Makes much.

Matt McGraner

Thanks John.

Brian Mitts

you. Thank


or at for there any Mr. appears And Brian questions it time. Mitts back like in closing And the remarks. queue the no are additional to to turn further this conference I'd

Brian Mitts

Yes, thank you.

not an what wrap-up recap, X% same-store It's again strong. we think growth, NOI plus very to unusual us. is kind like Just of for quarter

continues to be story that impact. So,

see strong continue our investments to returns upgraded units. We in from

get notwithstanding strong. we have value where at we we point, we capital like that very had low achieved driving we've still So, and through debt, from very the about debt. sheet of balance sit, swaps, the cost these and flexibility floating are which rate from while where a the deleveraging, and we conversations maintaining we've Matt's think that's net We the

ton into produced is not but for also And So assets to similar and story. the very of we desirable, overall the in And story company probably a and the came to contingent large still think on value we today like there B the -- achieve is we creation the NAV we're that. future. on a focus value and that achieving to also hope think those We proves dispositions continue and the shareholders. spend results we market results I first when to C

or So, weeks, everyone. the time future and are year-end see in who of we with in at Dallas for will this Thank which and here listen in many to we'll call. hosting few then NAREIT attended in the thank February that, you you you, everyone here


call. for conference participation. you today's concludes that gentlemen your and We ladies thank And