Docoh
Loading...

NXRT NexPoint Residential Trust

Participants
Jackie Graham Investor Relations
Brian Mitts Executive Vice President & Chief Financial Officer
Matt McGraner Executive Vice President & Chief Investment Officer
Tayo Okusanya Jefferies
Buck Horne Raymond James
John Massocca Ladenburg Thalmann
Merrill Ross Boenning Inc.
Jim Lykins D.A. Davidson
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, and welcome to the NexPoint Residential Trust, Incorporated Fourth Quarter 2018 Conference Call. Today's conference is being recorded. And at this time, I now would like to turn today's call over to Ms. Jackie Graham. Please, go ahead ma'am.

Jackie Graham

you. Thank and company's Residential quarter results year December everyone, to conference and to ended the review for XX. welcome day, Trust NexPoint call full Good the fourth

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

being this company's through website at a reminder, webcast As www.nexpointliving.com. call is the

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

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

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

Brian Mitts

discuss same period another XXXX of the XXXX up X.X%. of the NOI for revenue increase. Total increased X.X% core a FFO XXXX. is as solid in for same-store year-to-date reporting or with We're revenues XXXX XX% NOI Officer. than Jackie. compared higher X.X%; and and to for increase Investment versus Chief NXRT. and I'd I'm highlights Brian and NXRT XXXX Officer to conference XXXX, XXXX, call. XXXX joined issue markets Vice by the ahead we'll Executive Chief XXXX McGraner, and what for guidance Mitts, I'm like portfolio, Matt the everyone we see for Today present President welcome discuss Financial results quarter our in fourth were which Same-store X.X% of $X.XX very Thanks, for increase to $X.XX year XXXX slightly,

offering million issuance, selling price at November X.X $XXX $XX share We for price a property per first-ever million for increase down two $XX paying the to plan corporate we XX% by to executed execute a in proceeds units properties by which our million. an achieving renovating shares in XXX end January to year, completed QX. million public net during three fund units acquisition $XXX.X on our year, purchase the in of We We ROI. in completed adding XXX located of portfolio to XXXX in of transactions. the pipeline. Subsequent with units continue a XXXX the one drew to total full significant the disposed of revolver of and de-lever on in our of business our $XXX X,XXX renovation three approximately acquisitions for We XX, assets million for we a Phoenix acquired using equity

Raymond corporate acquisitions. a executed new revolver $XX.X portion drew immediately down with banks the of Phoenix also million the of the $XX purchase price fund new and -- of led by to the million revolver on a syndicated James. the We SunTrust We purchase

through So with take in highlights of XXXX. activity details let and me additional you that some the of

XX%. an For within acquisitions we've our On rehabs as achieved located one rent or cost mentioned, properties in we per in These of of gain adjacent per Two for three at core to as properties and X,XXX are were to which mentioned help renovations ROI average XX.X% portfolio completed to two and increases. those unit which an average three With ROI running completed we efficiencies. an achieved an NOI to-date the subsequent of FFO $XXX million. existing of and we've current units units And $XX unit. fuel Dallas are growth $X,XXX together achieving we X,XXX Nashville. acquired we $XX.X

for and ample renovations pipeline For of acquisitions. no into for we the XXXX, further XXXX have remainder an assuming --

that to which we our follows: on of our the X.X% of as in share, $XX.XX quarter low or The our revising cap report. is range end; midpoint slide increase. Our the supplemental high NOI per rates for and the last $XX.XX NOI compares $XX.XX a midpoint NAV NAV we've $XX.XX and on included in updated end growth

payout our we've we the XX% approximately XXXX times XX.X% reflect on dividend to growth April of ratio core with increased per Since our FFO. share a XX% of or in in FFO. core first line increase to in going by in goal dividend increased For three public dividend after by dividends, our $X.XXX keeping total maintain our XXXX,

last to in implement continue since replaced the we improvement about doing few implementing that. been Green it quarters we On units We're Mac Freddie the conjunction the plan. X,XXX with program that talking in plumbing the we've and fixtures

upgrades completed for in unit then. remainder our we've water, at which XX% per stock bill. premium XX cost had million traded utility the gallons On as buying an saving water planned we our properties, equates in -- and share estimated aggressively the shares XXX in buybacks XXXXX QX to $X.X sorry far of the $XX million reduction after of and year So per near has repurchases or since QX, for back no of XX

mentioned, during property we one disposition year January. in as Our the early disposed front

the that we and XXXX sense premium. is which in with year, our that January, trend stock So trading in three we're acquisitions net acquirers continue for the think makes a that we at given

XXXX QX increase. Total negative XXXX of $X.X was have million $X.XX FFO or or revenues in was XX XX,XXX versus $X.X per for QX $XX.X as $XX.X share which units. QX XXXX the for XXXX later of a NOI higher Net share $X.X in $X.XX in properties NOI and a across million or was detail. compared $X.XX the X.X% discuss for Let $XX.X negative per same versus increase. we'll million appealed which me through get was for $XX.X negative driven results $XX.X quarter QX million QX which It's million versus comprising period XXXX million the million call Same-store is QX $X.XX minus exclusively by taxes, or XXXX, increase, in was same-store million for to per and versus million $XX.X XXXX million income for share. Core XX.X% per share. were XXXX. the in XX.X% for been year-to-date. QX QX, of in those results QX, or $X.X

for of $XX.X Net negative $X.X per versus was million Core For income were $X.XX represented over share million share, XXXX, increase our million versus was FFO NOI of a $X.XXXX or million share. versus a or or XXXX. increase. X.X% or X.X%. XXXX in $XXX.X negative increase $XX.X which in XXXX XX% per was an $XX.X total share for million per million per million $XX.X $X.XX in versus in gain million revenues XXXX $XX.X $XXX.X XXXX $X.XX

in XX.X% same-store same-store increased X.X%, we in revenue of XX,XXX total increase. had Same-store Occupancy point XX year-to-date, was XXXX basis the properties XXXX XX pool, XX.X% equating to XXXX comprising rents in For units. was versus in $XX.X NOI for or $XXX.X for XXXX increase. versus in X.X% million Same-store million million X.X% versus in $XX.X expenses were versus increase. XXXX million XXXX Same-store million $XX.X increase. $XXX.X or for X.X% million a XXXX $XX.X in

midpoint. on a XXXX we of me as the low guidance, income Let move $X.XX Core high with on negative revenues a midpoint share with the end per a midpoint Same-store end share, per is the per of X% midpoint the share on end per share; FFO on on low to end, high the X.X%. midpoint on midpoint a with X.X% X.X% X%. revenues low of guidance high end X% which end on a Same-store end the high the Same-store on same-store the low X.X% $X.XX negative of $X.XX; XXXX to at of follows. end revenue NOI $X.XX. with Net with -- X.X%, X%. end, low issue which over us end of high the XX% leaves the guiding X.X% of $X.XX midpoint a we're on a increase the representing on $X.XXXX on to end, on for expenses total high rental low X% X%, end the

discuss Matt control market said seven for little taxes litigate that, We expense represents expect currently Before portfolio least can taxes want I us, necessary. single appeals process. item and real in a call as in turn detail. to the estate the outstanding we the assessment we expense I trends discuss following to Real over largest each estate Having our the have and we everyone over. where results XXXX, is have aggressively of and test more

will Matt remarks. discuss more in his in detail So,

mostly haven't conservative and expected appeals throughout have for is we've they're implemented these control. we in We in that consistent these This don't guesses appealing any like policy history prior to adjustments approach a things that to a take we company. the results because history made we'd XXXX of particularly of the taxes despite

always to do save to litigate do continue want certainly on or and whatever tax ways front However, I can we non-control for where find expense these in test stress aggressively to to and control necessary. try where the that we the

So, turn that talk call the with and to portfolios trends. over about me Matt mortgage to let

Matt McGraner

year XXXX, the finishing strong another report to with growth. in pleased very as I'm NOI year mentioned, Brian X.X% Brian. same-store Thanks

XX.X%. improved XXX NOI basis by Our margin points over year-over-year to

X.X% material which rents X.X%. As the by eight he also out our markets with in a mentioned X.X%. minute, of And XX then up least increases total increased at notwithstanding real tax unpack estate revenues average grew NOI I'll

was XXXX combined Dallas, portfolio our Atlanta's grew Phoenix NOI growth grew portfolio's national market, X.X%. our grew combined X.X%, example, X.X%, our the For average and NOI grew Texas for Florida X.X%, and Houston NOI X.X%,

and effective a Our quarter activity strong We greater even points on driving new on Brian as emphasis improved basis for same-store on with of leases occupancy leasing new while pool. the achieved which fourth strong placing also year the XX the X% mentioned, during quarter average. QX growth lease remained in

new which and out up seven basis on Retention points at from quarter year pool was driving best Atlanta, of was Palm, were outpaced same-store of Tampa, better. the higher Phoenix during growth or more. leases XX% by points West markets basis with XXX quarter X.X% for and at our all X.X% the least a markets the and year for ago Renewal rents year year-over-year. or XX steady Our the X.X% the Orlando, achieving growth XX at new lease improved

half alone As passed through We for lease the growth Midway the reached new in was was points X.X%. X.X% started February, and achieving improved that on performance XX to pool QX January January new X.X%, on same-store benefits. and same-store I new signed driving basis new seeing renewal lease X.X% we're in the in leases focus mentioned growth occupancy was lease already ours as year stronger growth NOI into renewals. key have of growth and new years set XXX up a the X.X%. occupancy even renewal first opposed year this XXXX. the us of XXX

guidance. Now turning to before transaction activity

plan XX.X%. our and X,XXX August, acquired Late to acquired next and core an here three average of presence adjacent Dallas approximately Beechwood is we growth year over annual rent reminder, units million. $XX.X Nashville. markets of for to last upgrade a Pointe, Nashville As in achieve our increasing our XXX the Recall again years Cedar units we

three XX%. XXX years In to For roughly the achieving upgrade here NOI our of submarket next we the the acquired II that $XX in rental for we've owned our asset, underwritten increase beating of the annual units over by September, we're Brentwood Nashville I is & million. months budget an XX.X%. five Recall late approximately plan Brandywine average

here we late X.X%. Versailles to Also our Crestmont in budget Dallas September, million. in directly beating $XX.X by adjacent acquired for Reserve are We NOI underwritten

three on units Phoenix annual growth to to cap totaling approximately Our implementing the by On an We're located XX% portfolio Discussing upgrade Phoenix total combined XXX two acquired of of This and this rate brought NOI units we units our and for next can these acquisition. plan management years the is three years. our NOI economic rent through we annual We an X,XXX in XXX assets acquisition here Phoenix three to $XXX at believe next XX%. by assets growth at X.X% XX.X%. budget achieve of portfolio. CapEx programs and the here the on or XXX over XXXX units assets three approximately million. underwritten grow XX, our over beating X.X% acquired these year January -- annual well average a rate budget recent value-add one

few a comments our on Finally, guidance.

to of on approximately XX%. X,XXX at For over reach average largely three We XX%. of the upgrades guidance plan assumes on ROI first lay of plan units full partial XXXX. conduct quarters XXX spending average the upgrading XXXX, and We numbers following or upgrades the -- partial revenue ROI an predominantly XXXX an XXX rehabs, mirrored which

does XXXX throughout We plan material the on settlement on tax estate mentioned. units our include and XX% to And partial dryer offers And by the a we washer sets of for in litigate in were of to seven after we between XX%. these ROIs these municipality less increases and with potential real of XXXX course average any into and ranging as at least yet, full DFW recovery XXXX assets potential settlements also X,XXX of in taxes occurred Also and for that advantageous elected experience of XXXX we for pursue haven't consistent Brian guidance delays these booking QX. which approximately conferences accrual what importantly, settlement our are conferences seven install most settlement for place. Houston on than once achieved of book finality of to XXXX and accruals even better ultimately probably of precedent was litigated the and through to thought we've to positive litigation. in benefit chance for these we taxes past proper amount tax greater recoveries importantly exercise allowing XXXX, Based years the on elected fighting litigation, keep and therefore it appeals either expect a take XXXX more to and/or higher not with reap actually

these expect resolution this year. through We of the of appeals April September in

guidance pursuing of completed $XXX Now assets January Phoenix acquisitions Florida, million, assumes that's Nashville. and in inclusive million actively onto in to three that acquisition Charlotte the and we're $XXX

second Foothills D.C. of most half assumes of guidance assets $XX at to capital the Pointe $XXX all Our the renovated recycling in million would the DFW, disposition in Southpoint million and occur in likely which potentially and of Phoenix XXXX.

guidance the is X% apartment end low the on midpoint double high X% on our of average Green As the same-store universal and with end street and Brian the X% coverage that's mentioned, in X%. range

our in strongest We XXXX to Nashville, NOI and for be markets Florida, growth Phoenix. Atlanta expect

made remarks. a acquisitions X.X% we've pipeline XX%. among We're NOI We're outlook wide I both a in And six just for closing, our affordable So to NexPoint with the to of always X% hard with markets over which smaller and and prepared delta for And also in that extend our the work XXXX-plus with to we larger to A product. to these our pleased XXXX. our pleased another respectively improve highest we've rehab to we B numbers. X% reiterate remains just still expect That's strong XXXX unit FFO of our while result demand class as that, the great we're have teams The favorable between over NOI guidance I'll XX.X% to historically and housing range have lastly, in for rent last pleased growth, all and the same-store we'll of thanks year value-add addition the be for obviously months. And to want appear continuing BH peers. execute. of

Brian Mitts

turn We'll questions. it Matt. Thanks, any for over now

Operator

question [Operator be Instructions] will Jefferies. Tayo first Okusanya you Our from Thank with

Tayo Okusanya

gentlemen. are Hi. morning, you? How Good

Matt McGraner

Good morning.

Brian Mitts

you? are How Good.

Tayo Okusanya

Good. Couple me. from

much they understand make taxes, just all, I'm such those But in of the they and taxes. what kind your does work First on that? could building XQ curious they the you And curious, of comments the mean, the process Difficulty] property of appeal? potentially were to increasing Were appealing I that it absolute just was thought the rates? so Were numbers increasing big was? the appeal jump tax about what I jump the I'm absolute [Technical doing they actually what a how value just

Brian Mitts

keep kind different take general we differs different point, in high assessment we a Maybe high. through go assessment is that the municipalities. places. we of we at in process. the too different in across it But some receive that Many the second year. or to It's outrageously point Yeah. some mind And think between assessment. at receive too an an But times,

in So try on point. our into up to guide assessment based yet we come a past conservative get the tax with something realistic a we the experience, various on from to that more and information the markets, then from consultants based

favorable we're And to So through then, the And about go see end the year, Texas. reassessment by in don't accruals appeal, completed the go of the on typically, particularly throughout we we constantly if process, a tweaking up. next and as year the we'll process. that, thinking you this get

have in And Matt as most of on a lot delayed pushed we mentioned, XXXX. cases, and been calendars now. even don't the into As anything has of this

not book the and out. you – but instead to GAAP, of at got no end of the pushed having of full have settled, anticipate really accrual the for all this instead year basis we it it's So

We we future prudent full estimates fourth to QX. up the an saw book just as quarter. unknown up recoveries to We big ended to didn't any the just a increase accrual. make whole in quantity. So why in booking attempt it's We thought such accrual more it's the thought… you such because That's

Tayo Okusanya

seems right? seven a just was large for assets? assets, that just that It across increase seven But such

Brian Mitts

assessments get at calendar in what that's end continue not don't be for, general continue the the the process But of it's accruing you everywhere. litigated. this There's due start and more year, we a more seven some we we as to the XXXX-year municipalities go the as year, for different so and to Well, and throughout on assessments. in assets you same and case get those know you're the for accruing

Matt McGraner

add that I'll Yes. quickly. real two to things

have these conferences are D-FW and have in and and the November So those XXXX. to been largely they're County. in settlement Tarrant pushed December settlement We're and to supposed again conferences and us into voice Dallas and

I -- week think actually were three on two I four of like of this are Thursday. which think them

is So the to we trying same-store it Brixmor instead what what -- trouble for in a if more year we pattress the the numbers. was what And thing we thought years throughout to appropriate want year. couple take and recall, smooth the was all appropriate to to of out ago got you NOI do didn't increases tax just

the in Now these to it's it on opportunity our $XXX,XXX there refunds, from I $XXX,XXX. be in recapture upwards do low think of end anywhere to and could some XXXX is estimation of

ultimately our opportunity achieving an have we'll that at in some think prudent refunds, approach do the success this we is view. but and So

Tayo Okusanya

Got you.

The kind than kind is on doing that helpful. move what my And interest just on That's two, that fund of put debt of to rate then the one, debt the approach to additional rather Then portfolio, without dispositions that? let's next of Phoenix dealing kind why to on debt? question. Freddie Okay.

Matt McGraner

we've that as facilitate up recycling. set then is were And reverse answer -- set first to your as They all the there capital XXX month up to XXXXs over one first were floating done. question rate Freddie traditionally

also have into our So well. with we filed can plan still it extent as and and we'll that using with have tool you'll K, see that it ability the be on

in surge of So leverage, last that recycling just it's done I think a temporary course it's we've over capital the four years. not the permanent

Tayo Okusanya

debt? the average long was And the that you. Got is duration how Freddie of debt

Matt McGraner

Seven years.

Tayo Okusanya

right. Seven I’ll line All off ask next the questioner years? get Thank let Okay. question. and you. the

Matt McGraner

Thanks, Tayo.

Operator

will question be from Horne Our next Raymond James. Buck with

Buck Horne

Good Yes. Hey. morning. Thanks.

tax tax to timing So curious. going mean, addressed more issue I a to I coming situation this you property little was bills were I got the catch guess, full in accrual? think, just the on you what up there. that understood property exactly I require when with the regards the

Brian Mitts

Late this early into December or year. November

booking color, a were little XXXX. of the got seven So We outstanding. up so end we actually more of three XX year, ended still as in just We QX settled. three, had the those of

XXXX, the it's settlement to mind, we're So kind talk of what process, little QX. the weren't you're comparing to bit as a this also of QX in was of timing ongoing realize percentages, different these happen in going we fully that's situation. start -- it conferences And you case that in a but in terms to time something which and keep any

the as to increase dramatic just X% point. isn't X% as a at seems it's it comparison bad So

Buck Horne

was tax you have like you've guidance? And feel property what the the increase in assumption for -- guys XXXX adequately

Brian Mitts

on. Go

Matt McGraner

X% same-store. on the

Buck Horne

X% on…?

Matt McGraner

Yes.

for lot -- in to And XXXX, was the of certainly. they're XXXX to on calendar being being especially together. we're these if me, I say a that, the tax wrapped add what same for think deals, excuse guidance Brian's property conservative comment also I'd year,

fact we settle third that one these had as okay, same this price you not these the of we as and even they'll at like, at two haven't you say, take settlement may the this settle -- well. conferences. -- third they So they couple And settle some that with the as then may, time unless the won't

with, that especially process XXXX sort the fluid in we're that's So Texas. of end of dealing

Brian Mitts

taxes. a And bit little back the kind the of details of Buck, of out stepping

across results year, was the had For X.X%. had Core we NOI the same-store FFO strong XX%. board. up growth We of

get one where lot comes of a the in having estimate. is the taxes. located "low-tax piece of That's tax the that very on the unfortunate is that lot from. downsides unpredictable, of And states" hard they it's these portfolio aggressive a very, of to property So revenue

protect be we that table could what ourselves And we into route just pushes which and on very we could of more and taking was But and have to aggressive. push thought XXXX, instead easy we So taking it. guidance. baking in second way. this a into not our but quarter get Because favorable just results a XXXX that could situation know, we the hits we're and don't numbers positive there's in quarter we or our first pretty the where get

Buck Horne

very happened I or I non-recurring helpful. CapEx, quick surge was more One noticed you That's wondering if of on and this year. CapEx a kind of the Okay. last kind help year? maintenance one. double what up budgeting level in actually you're this side, and of for big also kind specifically maintenance about the of could what CapEx than double CapEx maintenance highlight last is

Matt McGraner

Yes.

we is, as So income what amenity refer resident a we're a to benefit as by getting think, service. of the surge that I the largely offset

So did things a trash, solar that's have the on screens, side. -- that corresponding corresponding alarms like benefit have a income valet security to

XX% so that seeing XXXX where increase So CapEx. in corresponding XXXX -- I over while think for revenue with on we the a double-digit are or

an ROI it's So item.

$XX the so a excluding CapEx same-store that's your and recurring think unit, pool. $XXX on which it that's call resident of In the managing I ongoing terms services question, million about

Buck Horne

great. Okay. you. All Thank right,

Operator

you. Thank

will Our from question with next Ladenburg be Massocca John Thalmann.

John Massocca

morning. Good

maybe the year. this break -- tax from a out tax As you into look the

are more are amount and maybe seeing maybe of upgrades the As the have of potential partial of the in and legacy in do rehabs you entire to kind the of units pipeline opportunities property know of for additional purchased. rehabs, some outstanding of is kind look traditionally a that you additions smaller plants I assets? kind you into of out the going? rehabs And

Matt McGraner

lower suite partial after it's on units the the and spend partial. opportunity second a we've upgrade lower untapped. a the in consider we amount What and the program gone doing we've largely increase, upgrades are phenomenal. and a And of been renovated of is ROIs appliance full add/upgrade it's will through Yes dollar kind would amount but that huge that dollar a generation XXXX

exists. XXXX in portfolio; units. So opportunity units that the that's to thinking an about XXXX I'm XXXX

John Massocca

the percent portfolio of kind these XX% of amounts? dollar say -- That's smaller you'd Okay. can then be

Matt McGraner

Yes.

John Massocca

with it's kind seen increase, then has one expected Southpoint, there know reverse disposition -- Virginia I of disposition put they're the of at up to moving any Northern in is all. And you've mean that have the pricing increase you given candidate? assets Amazon specifically central announcement I and

Matt McGraner

Yes we for sure, is have. The seen per year not generally although will se. just And multi-housing that this sell answer increased that reverse is national interest with one after in we've in it's and Arlington some And conference increase. we yes. everything transpired given Amazon it's

cap one drafting So range still why off the lowered rate reasons And XX it's modestly of the the news. of we by basis points.

this $XX do So we to million $XX expect year. to transact of million that kind range

John Massocca

I taxes and positive Houston? in giving DFW I been of kind are of of I some just had of from accrual to you maybe And and other kind any things, of some in the municipalities have mean side in outside there going then kind DFW and on optimistic in was completely about back other know by did out all on the Or outstanding? going the mean of what XQ that that's some wiped and still that? some of hit Houston assessments appeal of

Matt McGraner

I same-store quantify NOI good So Nashville, top – that off Marietta we bring of because we'll don't a will pretty of the two on don't pool have the able a that heap we -- of yet to there Atlanta because into we hit for think we the are the to help stay it tax kind numbers those year. set haven't reassess number going – up we're last opportunities but year. are and drafting -- And XXXX, every hard comp so this year Nashville think -- got our then I been and think and in same-store

are for think I opportunities the positive potential the So in outside of appeals those two tax DFW.

John Massocca

Understood. That's much. it Thanks for very me.

Matt McGraner

Thanks.

Brian Mitts

you. Thank

Operator

Thank you.

Our with Inc. Boenning next Merrill from will be question Ross

Merrill Ross

morning. Good you. Thank

the wondering, twice complex spend therefore of the the be to the so they that? plan far. you more were affected money I'm to take roughly regular And Phoenix, of at acquisition is that the and average longer is in that means that downside and Looking on will rental you more occupancy if spent amount that value-add will because

Brian Mitts

don't I Merrill. think so

number are that, that is you the think some materials, reason right they've larger up units. I in in gone I assets labor inflation we've recently think acquired but have the because one, and largely modestly,

So, units capital. require just larger more

the do then, are more, roughly units any in-house We but little on weeks And or there. And turn. naturally turns. hiccup don't ROIs these the the same is the doing three spend same. so still a We're as occupancy we the or two just – bit correspondingly see is

we drive planned in continue XXXX. occupancy had goals and maintain So to our to

Merrill Ross

you. Thank Great.

Brian Mitts

You bet.

Operator

next Okusanya you. Thank Jefferies. be [Operator Tayo question And Instructions] our with from will

Tayo Okusanya

Yes.

Another your And you just right when the how to you gate? you driven kind guidance you need acquisitions about strategy that to be be provided, transactions you balance, around them value-add And to by you accretion your on generally expect the and de-lever? the range capital fund do think this year more allocation based off quick do bit acquisitions, over Is how I the just a to about going would work to of possibly acquisitions accretive relative time? again, one funding on acquisition? expect to talk little whether that

Brian Mitts

Yeah.

we're I you NOI Cedar, I with doing to So surprised we're of Brandywine, think in have that. compared and done acquisitions those how and that our upside the potently the all targeting Crestmont the last six that to heard through pleased budgets quite first and the we've months, went we're – as acquisitions

because both? through January we be do So we done that we ATM? to we've but $XX them will we in best once certainly the were we've dispo balancing we deal. grow year be a one, same-store, acquisitions certainly for done that million in a and that liked in raise. I we're equity of we funded think then accretive think The two hit not but it? we do they they underwriting a said model hopeful – exercise deals the -- at taken -- that can the or that sure we're $XXX look full model X.X% going they'll that -- undergo accretive take the can forward renovations. we've year. way equity -- we And NOI be finance accretive did be especially occurs a how look with the run deal year those year Do Like that we corporate do always of or and a you what Do a equity? raise And through is million combination Do the

then the we're cap bid still the what do have be is here, what'll far have I guidance private can the so selling good and implied our it delever any lucky rate core terms depends our maintain We same we use. where We see we FFO to stock And market would if thing If are trading can with than year an we're assets. what to it An to we and currency at anything just is. -- we'll upside continue more right for what But nonetheless, didn't basis. on and assets. on delever. now in to sell leverage on a sell to think this of price is look time to bid

all or I that a tool from -- that long think acquisition at we're do in box guidance the the we'll tools year. So, looking guess is answer that this and answer short the hit long-winded the answer

Tayo Okusanya

quick -- taxes estate back real been to a Okay. go and second. to for just I've

I you get guess I quarter-over-quarter would relative But trying that think and estate I XXXX if back same-store XX% forecast the that why to of you out the so. about than understand on XXXX, differences your when even that year? again increase. you next kind real this idea fairly XQ back for I'm kind X% just that figure about or year, successful X% million $X.X taxes large next XQ a mentioned not think even to appeal, of may again versus I up your of And go more

Matt McGraner

lower last tax April a we out the settlements February kicked in comp got been we number year this rather as we Because and the to have -- QX settled are that since of year. of had settled part year, a the last last some benefit we year

perspective -- I -- benefits of of hopefully mortgages least of issue can at the And that from and though is the toggle So, is benefit. one the consultants or XXXX think our together. one that and was the part that's -- we XXXX

give XXXX we all more increase. can from have lock can little a of right bit number these in say but up -- certainly X% hopefully in we'll we XXXX, lower all which we and So, lower obviously questions a than much

possible and already -- but continue several it the think So, trade done we've try, assets, to and we'll to three think I on that's I make that's we'll look that think that horse the opportunity. it's we

Brian Mitts

XXXX again Tayo strong pretty we that with trade, And number. end at horse

to thought the this pretty quarter. settle saw are don't an for we assessments, out very end the So, "cost worth that we I we the just take look because a in path tax think truly definitely maximize just we bottom-line. we because convenience our mean is here" that's we strong our numbers all easier of good don't accrual-based. And

Matt McGraner

you. Thank

Operator

Thank you.

with question next D.A. Our be will Lykins from Jim Davidson.

Jim Lykins

guys. morning good Hey,

Matt McGraner

morning, Jim. Good

Jim Lykins

to back So – good morning.

So Phoenix back the portfolio. to

are all, I units how of many I this, but value-add apologize, First there? missed

Matt McGraner

XXX.

Jim Lykins

XXX? Okay.

Matt McGraner

Yes.

Jim Lykins

commentary transaction, us is? about be And can leveraging occupancy, vintage any you rents? maybe average additional on How tell that the you'll What efficiencies? anything

Matt McGraner

great one units. Average XXXX. XXXX and built in They're built two is in large Yeah, assets were all questions. vintage was

them of ceilings. nine-foot have Some have two nine-foot ceilings,

deals. $X,XXX X.X. larger of pretty so think three our size, The other Phoenix also affluent them located. our unit. areas I higher the I smaller a well across one than They're more at are about There is rents rent, than and run they're a average push The bit average can other units there. and guess you Extremely little occupancy they're in heavy

assets location, a kind potential -- money. Foothills at not a replacement a a think four made we've quality selling deal gains we when lower harvested some So and of the it's certainly but where for replacement you're great Pointe

So, that was four a theory, last stuff that or three in we've done years. the

Jim Lykins

mentioned good equally number to use? quarter? run Should What of and thinking partial a be about we will each And full you Okay. weighted be way that upgrades. value-add, a for

Matt McGraner

a try we've XXX XXX number. this a always think to year I hit Yeah, is quarter. Yeah, to I still good quarter XXX think

Jim Lykins

value-add? long across now, you north as And right the to stay look you the on think sustainable ROIs Okay. of how do XX% its portfolio

Matt McGraner

between by XX%. through I see forever. is still ability affordability A we deals prepared to It by the into I remarks ended or just will it and continue CapEx to mean, our gap certainly buying been there think of year. be. will saying the to We're has next that's still this it mean, the story, window or not Yeah, drive and is this start year B demand going and I outsized nice with properties solutions. space think little the B we exhibit continue delivering returns new to the

that for that think is as a United I States located affordable the are markets. in our housing story continue there need nice long to in is well going as

Brian Mitts

ROI for XX%. XXXX, for Jim And was our renovations

they were so north into XXXX came or is We pretty pretty number. achievable. -- think So XX% a well we very for this of XX% year

Jim Lykins

Okay. Thanks, guys.

Matt McGraner

Thanks, Jim.

Operator

Thank I'm in questions queue time. the showing you. at this no further

Matt McGraner

right. All

Brian Mitts

All right. Thank to everybody We'll wrap you it participating. up. for