AVB Avalonbay Communities

Jason Reilley Vice President of Investor Relations
Tim Naughton Chief Executive Officer
Sean Breslin Chief Operating Officer
Matt Birenbaum Chief Investment Officer
Kevin O'Shea Chief Financial Officer
Nick Joseph Citigroup
Rich Hightower Evercore ISI
Rich Hill Morgan Stanley
Jeff Spector Bank of America
Austin Wurschmidt KeyBanc Capital Markets
Trent Trujillo Scotiabank
John Kim BMO Capital Markets
John Guinee Stifel
John Pawlowski Green Street Advisors
Hardik Goel Zelman & Associates
Alex Kubicek Baird
Alexander Goldfarb Sandler O'Neill
Linda Tsai Jefferies
Haendel St. Juste Mizuho Securities
Michael Bilerman Citigroup
Call transcript
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Good morning, ladies and gentlemen, and welcome to the AvalonBay Communities Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following remarks by the company, we will conduct a question-and-answer session. [Operator Instructions]

Your host for today's conference call is Mr. of President Vice Reilley, Investor Relations. Jason you Reilley, may begin conference. your Mr

Jason Reilley

Vicki Thank conference AvalonBay Communities call. welcome third to you, and quarter XXXX earnings

XX-K made the materially. uncertainties yesterday as associated Form Before statements with forward-looking uncertainties statements and are note in please results with company's of variety during may well the these actual be and differ a and we release There discussion filed this as afternoon's risks that of Form press and in discussion. The begin, XX-Q may SEC. forward-looking risks release operating As usual, and refer to include this results be The our our definitions with information and and this which to at also terms, of press used the and measures we does financial encourage is review an today's performance. of discussion. on attachment attachment you non-GAAP in financial during may reconciliations available other website

over of Naughton, I'll with Tim Chairman the remarks. his to for CEO call and Communities And turn that, AvalonBay

Tim Naughton

welcome afterwards. And and Matt Jason. and us Breslin available with provide I last Matt and we slides are Sean, brief Q&A posted will Sean to will today of that call, Thanks, for night on O'Shea, Birenbaum. the Kevin our all QX commentary be me

then Our a QX including an and a update the review morning some in portfolio. focus on of development areas summary comments lastly, this and on platform providing operating operations will the of year-to-date results, of innovation

We just X.X% average X.X% $XX X.X% growth year X.X% X%. quarter or Same-store an or completed at community of $XXX Seattle X with yield so at an yield same-store the stands for to in of highlights include year over of X% this Slide QX at including Year-to-date quarter revenue this a million far quarter range. initial over on million in regions for in clustered at redevelopment. redevelopment X.X%. including came revenue the year-to-date. FFO now X.X% the most core X.X% Starting X.X% just growth and in growth

Southeast we in third communities have in of Archstone where last sold as development that Florida, $XXX the acquired transaction. one quarter purchased two million including communities far including million We totaling part our assets $XXX Texas also were the in four We totaling QX way. the in community so two under

Lastly, we with million be construction. entered a to forward into year in over late will of currently development, $XXX help complete remaining September, the the which have contract fund settled next will the equity cost under

operations. that now, to it with discuss to Sean And I'll over turn

Sean Breslin

Okay. Thanks, Tim.

change and Slide chart to X%. rent shows Turning same-store our trailing West to converging average This the portfolio X. East four-quarter for and roughly represents the average

During greater QX, for by portfolio basis the was The East last points our however, Coast than XX perspective rent from a QX was the West East change our rent X.X%, XXXX. of West outperformed assets. portfolio Coast time our X.X% produced Coast change

points QX, up During England, East points XXX change healthy was basis basis the very mid-Atlantic, X.X% the a portfolio year-over-year New in up X.X% Coast in led and year-over-year. rent by XX

year-over-year. Northern to On year-over-year. the produced Northwest delivered each Southern was points of in unchanged down XXX and than change which portfolio the rent West X.X% X.X%, Pacific essentially California range Coast, more change rent basis like-term our X%

in like revenue X, half the of to year. of a the few half components highlight this I'd second Turning Slide of growth and to first

the is year. relatively throughout revenue expect we chart, the on stable primary growth rate same-store driver indicated the of rental As growth which

revenue from of portfolio. growth retail our leased-up mentioned the growth concessions burn our first QX and during new benefited off as the from in of However, bad I same-store pool, the debt into reduction entrants year this a revenue half in from call, healthy

components of contributed points the year. first in those don't during half of have rental an components much same XX to We In the tailwind growth basis total, these incremental revenue from a regulations second year and impact the York. has rent adopted of offset LA the been rent are the and New the caps recently realizing in the benefit of in we by half

more As rate second revenue in with growth. line is a of growth half the result, the actual rental year in the

share X. Turning the which doing us little bit margins operating Slide enhance on I'd a to like about we're and customers. to new will front, what allow reach to our innovation

side As initiatives, technologies, create slide. to number of indicated and including leveraging the Slide on various a those X, organizational scale the identified left we're of through capabilities side of value our on new right the

margin in offerings of renewal and I'll administration. relate service, address initiatives to which our renewal leasing and centralized along detail enhancement customized Some more with maintenance shortly,

on studying We XX% improve AI, we're home. apartment renter months our of digitalization including roughly Based the would homes technologies or addition using operation. of offering indicated a our years. early in also X% scale at scale We're customers. expect and we other various next market of and reach our to residential use our center over XX results, started property management furnished organization, to ago. opportunities In new select the technology our more the the portfolio apartment to of space, locations about In prefer studies couple furnished that segmentation to productivity the call

of are In limited high quality and the a homes amenity-like new limited community through rental a serve to and market addition, segment the we pursuing the strategy apartment community services. service profitably of design development featuring

via we the space. community, reduce our cost design, expect almost thoughtful the capital materials of development elimination per home amenity As of typical compared choice all to and to

cost customer is what expenses spaces. benefit The eliminating side, reduce to staff operating XX% of to by the new net a the customer expect we in would the communities on-site other to to most of XX% below of by maintaining amenity and facilitated tends expensive as approximately rental rate area. operating the the be interactions be most On technology the

in under pilot first months the construction we Our results XX next and community XX expect to is initial months. currently

We is Turning AI tied model agent XX leasing of technology created journey activities. on self customer to earlier demand couple a the use and months year, provide first staffing and of phase detail ago, the customer new journey initiatives. enabled adoption leasing all this an dynamic X Slide to automated out most mapped apartment leasing now of service to started which the powered of we've driven redesign implementing more a a model. the more includes our for an About

fully the agent our prospective is of clip The represents entire conversation on a now Slide a automated deployed screenshot recent with portfolio. side across text Our resident. right the X of agent had a

and XX agent basis a tour our this year it we're day, automated a adoption in XXX operates regions metrics an and the of We including The and XXX a improvement seeing result about hours end ratios. leads to entire adopt conversion expect as days performance model point year. to improved a by this technology next year, a across the implemented portfolio staffing two of of

We're improvement margin result two approach self-guided our the to components leasing, include realize our about a primarily leasing expect of to which the the XX teams. by new same-store in self-service driven Other substantial an new Overall, is basis as point of and productivity productivity seeing regions our expect a similar more in tours pilot improvement regions. leasing of operating in increase a other results model our we move-ins. across and in

new phases science for to associate our are Turning of enhanced it digitalized we've but Slide platform, and several the demand data to includes procurement, road performance new maintenance the optimization application a X, to mode. predict workflow service scheduling plan, created now map and also metrics. via There automated

XXXX. the stabilization to in which our of maintenance of and process us in new mid-year We're integrating systems, with other the first roughly would platform realize phase the enterprise allow XXXX implement QX

which XX point roughly teams. another service an model same-store expect We increase our basis from in by improvement operating primarily productivity in our the is margin driven new of maintenance our maintenance

of initiatives. on to turning an XX, environmental lastly, to Slide provide our also And like I'd update some

already few million invested reduce we annual and utility generating our several started and more LED after of opportunities pilots. lighting, in solar to including have past which carbon years, which emissions the have more than $X Over broadly generation, we savings number install portfolio completing energy in on-site consumption across a to is

of solar future generating returns year, by We X of additional next on with to in are power more extend to strong and providing years. a million track almost on to carbon-free installed the have investment capacity end assets opportunity megawatts $XX

Columbus Matt I'll that, Matt? to about talk development it Circle. over in With turn to

Matt Birenbaum

All Great. Thanks, right. Sean.

Our strong growth driver earnings a this and both be cycle. to even activity NAV of business continues far development into the

currently stabilized million roughly believe value growth into development assets $XXX these which Slide currently have or We that has worth market in be private billion on would of on million seen weighted XX of As in lease-up generating in corresponding and XX, directly average translates today's $XXX completed been completion, communities the with we $X.X rents creation across yield based in is on recently a initial NAV. expenses X.X%.

we growth we currently NOI of future Slide all way. XX illustrates development under the as complete expect the

from is can of are of free lease-up this side hand that that are $X.X on this total $XXX million we on assets hand. under side our construction, but shown $XX billion see at in the plus you left stabilization the NOI NOI on in another lease-up, million anticipate currently assets $XXX the that shown previous slide On in million in from worth the slide, the cash forward match of flow future And to equity of a hand recent activity NOI right almost deal, $XXX not the in slide, yet for in between and funded cash completely come. as million

or shown meaningfully above two does unit not of $XXX With development next proceeds fund. sources which to contribute condominium to pending activity in our over marginal we capital, projected to the sales is sales, to three million yields of realize cost well earnings growth and addition, QX as years. include projected In to this the remaining expect years asset capital initial exceed which XXXX from short-term

at Speaking The Columbus provides mixed proceeds, update Loggia. been renamed of Park on our XX Manhattan, an in sales use slide condominium Circle which has building

has prior in we offering, selling have been And expect the sale to in market settlement we tax residential will and early condominium been for Manhattan as the the discussed once lots we As response the property recorded our XX move condominiums contracts, sales signed for the XXXX in marketing to on have can top the since city. began now are back component. in The that which on the Park proceeding confirm individual with execution based calls, individual we launch we have we currently Loggia building the apartments with April.

with of component XX,XXX the space is leased we market lease, business Ultimately, component for it frontage. for and for feet on expect with the retail the our of about advanced project total received XXXX. day about has total to anchor the left to continues well in feet we be in been which in by another any XX,XXX floor, opening this $XX target feet far of negotiations feet on most generate XX,XXX with tenant square square now. the so to The second lease, NOI leave available Of million from also retail Broadway square floor retail XX,XXX square stabilization would once which reaches us ground roughly are

to that, I'll remarks. with for turn it back over Tim some And concluding

Tim Naughton

Okay. Thanks, Matt.

So either and in Sean technology scale, first time are revenue the in X.X% in XXXX, grow line markets investing Coast, remain most in East driving aggressively leveraging summary, markets by healthy or quite slightly our of the and with and West since utility is to growth performing margins we balance capabilities of leasing Coast maintenance costs. producing to ahead efficiencies for operating consistent platform, X% the apartment as mentioned, late

platform; delivered in our growth stabilize over development match funding consistently to continue an over to significant value XX-year cycle the next meaningfully of investments next our of expect couple years. earnings We And we our several combined creation to activity margins this the expansion contribute that's with and value through quarters. XX%-plus practice create over areas sector-leading should these

to Vicki, the Q&A. ready with we open call that, And are for


Citi. question Thank Nick Instructions] our Joseph take ahead. you. We'll [Operator Please with go first today from

Nick Joseph

you growth the Sean, highlighted rent Thanks. converging.

East seeing what next over think here. months? in and expectations you're your the today, from Coast the what Do rent see we'll are East Coast XX sustained you the outperformance for Given West

Sean Breslin

move kind factors number outlook Yes to into and Nick. we XXXX. there here. supply demand of that the Sean of Good there's a mean, topic. out question for relate I that on as

if benefit XXXX the Coast in supply be on compared want most the we're about part you projected into in City some down, in deliveries going where to On where for coming is in seeing is the half to to New supply roughly as XXXX XXXX. side, it think next East York year

of benefit a may degree muted bit rent So, we be regulations. by little there some expect to obviously that the

year, it next of see some half bleeds as to impact started mid-year. first as The we're that through know you going it from

a bit good. way, XX, a So next to market say of pure see going it sub-markets Boston, New we dilution little but are down you you first Boston of California we City and want Coast look York San pivot year. at with had And Mid-Atlantic, in will LA. half I'd across see most from the supply par that, the then looks expecting as the question, that bit supply of pretty to a at supply to back part, for from 'XX from half urban if fundamentals the more And you of if East all we'll come San things be the Francisco to Northern more little same the a the Bay standpoint. markets, in and the we're West and three in roughly Jose perspective, more

going bit to based expect the see we change the deliveries. was job that the one to and that the I where or think etc. supply demand markets relatively jobs some macroeconomic sort in the sometimes the see a decelerate just we from Those see. either of supply downside stable data a to why the about is it not little number you'd based factors. So, of on to side data probably you all perspective of embedded interesting or there's we're if the side assuming point on component potentially growth The it reasons upside are it's

that the of a we've supply Jobs has year. bit play. a had region, the into tends quite factors as in lot nice those that to this to Mid-Atlantic example and so some bring tailwind come and been it's what expected contractors up about procurement's of but a So an

So have market-by-market, see we continue look yet on the perform West expect reasons the net-net, but above East it's good par, Coast to Coast it be based at to you'd at seen. of sort is there're to to well to what whether

to anything So you to I that add if Tim? don't know want

Tim Naughton

Sean. that's slightly just I Yes, Yes. right, things are one think, of East is tightly sort Nick, think markets remarkable West. while the that's of all No, clustered the I think the is how I all outperforming

basis the remarkable I the really equilibrium across the think that board, pretty we're and where it I XX can't seem market. is you when in all cycle about of to or just basis remember markets striking time the XXX through like one of how seems think again course points close almost that's us any sort moves a of to up cycle which like occurred. is what's supply It within down which kind the does points, just performing

basically don't know if a I it's, East equilibrium is markets house as and for going approaching firm year that view much there's as West So balance from or are view. to outperform next in the our

Nick Joseph

average helpful. price? on then What's West for Upper the contracts. the signed That's Thanks. very condo Side XX just the sales And sales

Matt Birenbaum

of and of contracts. want Yes. units parts too do give Hi, Nick. different price but about the building. It's to much Matt. signed XX don't detail, we The average those I particular are $X,XXX,XXX in is they

Nick Joseph

Thanks. Okay.


And to Evercore. Hightower we'll go Rich with

Rich Hightower

Hi, guys. morning good

Matt Birenbaum

Good morning.

Rich Hightower

it into expect of ROI NOI are of ramping and on. translate categories like tech roll ROI. question What looks points on but on terms growth sort of maybe of all you incremental spend a to the you spending this could know of basis you you've up that, we an expressed estimated I that in out of old-fashioned the if what take sort just all together? So, impact, the some guys that do

Sean Breslin

want along $XX at of the you of because for bit of is basis. I all particularly, when a maintenance things in kind kind maintenance per look a number home compared points to, different basis about, pretty where we're side, to and deliver Sean. the and backbone just they're development each give about to talking They one investment little are Yes. these doing is leasing of communities. that A that is enhancement budgets have the that leasing Rich, focus of terms on in margin XXX as say, sort it the the capital their on independent the expected we're But own of terms this on far moment roughly which of on just side I'll are. you we million. the

can million a math quickly the $XX you run pretty a that's investment, basis operating pretty improvement on for good XXX margin, on ROI. point So

Rich Hightower

terms function in maybe supply know two expense of We uptick think And in larger of not the some in in categories? Okay. as those can then just talk market tight terms quarter could function growth, couple you Yes. that there in of interplay having this secondly, last expense is do job I technology growth of, we're expense those a an How efficiency in labor But, a new that. of if the R&M just in And as sort do your spending. markets. was only but part the maybe of I conversation and to general, factors also markets. of with a labor of

Sean Breslin

address to to when you each is, couple that comments here, a and pretty happy maybe One Yes, be look lumpy. Sure. quarter of broad can things at begin with.

we really there's sort So year-to-date that a to things happening. are add from people are different since we consider focusing on of of to a where basis tend lot

tends even you the completing when the an R&M. example, relates patterns sort QX, the peak as late-QX, of markets when projects greater there's as to particularly to the there. Mid-Atlantic a and at spend Obviously be example for in of of is maintenance Northeast look to an given in that the so here in some lot spend there turnover in seasonal of there QX So and weather, the R&M quarter, you're lumpiness is

was down center substantial so QX numbers as there's of year, increase year about marketing OpEx On why at marketing QX XX%. an example, That's the side, this a last looked went year. marketing for you big a had if credit we last call and

on workers' to to going claims time, I'm specific XXX sort us basis questions that, the associates points for at see to XXX look we're payroll and as of payroll. of a up to in like things benefits growth labor, the address on sense field. have and over lumpy that terms are efficiency of some related year-to-date, points organic that there, underlying in of really So, give period the that your XXX example, it the we're activity side around just kind you comp things About points basis is like and versus to relates starting an but some very you and basis to of

X% you to, if more anywhere folks, is constrained types you even wage labor ADP on And from pretty say data running our at of maybe for if growth a consider up pick source that, growth look so. the cost a basis. year-over-year It's

So office X% through leveraging that help operating contain the we've so associates work system of taken some mainly we're to is good merit for which side doing, a model been able the the FTEs we're the of the of work pool out to that doing, still some our population. range our on side, innovation on the that is to far office X% the in basis year-over-year on for because some

that minimum is to as and markets for other side would regulation wage in outsourced it thing pressure relates one some is, services. on of certain maintenance on the The pressure I That's that sort. comment there and things putting labor

the labor even as markets an was example, So etc.; down turnover some up. though Northern rates in example, Seattle are an California, rates as labor of in

and systems efficient more of to try labor than the own as in make with as being with sure maintenance we some that's the can so so our reasons as well. we one that investing is for initiative have those So vendors but we not outsource only of the as like, the component we're is up labor, might be procurement labor you we're to to as of can of efficient

your that topics there. of hopefully number addresses So a

Rich Hightower

great Thank that's Yes, Sean. you, color.

Sean Breslin



Hill to with go We'll Morgan Rich Stanley.

Rich Hill

things. with a on morning couple regulation, some your back we've some mixed heard of good guys, peers. Getting to Hi, rent of commentary

or about I revenue was York California sort So it's to that too wondering the could early of and breaking maybe on if City if detail. think you think through down New impact

Sean Breslin

this you and Sean expected the say looking what next when kind what Rich, breakdown, you impact just year... this year of of or for, are is

Rich Hill

Well, really next, yes.

your in So I where helpful pitch thought is color post was earnings there an really offset. book the

helpful look you've So, to New is you sort do trying York of was obviously your more more I'm that We market. to exposure understand. talked about understand, at onerous onerous? and New being to California York decreasing City think is that or

at headwinds. was wasn't market I big thinking deal, some of it a like sounds it's think X%-plus inflation the that California having

trying I'm York? So just how of it's driven much New quantify to by and offset versus that California

Sean Breslin


yes, So perspective. on a just give brief one each you give to some you let summary me

So that be million. is impact same-store last that we what York we that fees of New relates income it of of about And the for about application quarter the the fee to derived we of as in XX% that from call on things talked second $X about expected half can to generate XXXX and sort. the loss all is

or may you full rate about for is or X it recall, As impact growth in XX basis the the in basis X points basis for points concentrated about growth the the by points same-store year really points, New half, York-New and in will portfolio the so second points. the but XX year the it's since XX the all full reduce Jersey basis basis is region about

in expect in second and York, the you half year-over-year where the first stable be get so XXXX we of that's half 'XX. impact, So, that for The roughly of to a an would second XXXX. second because of half you this year, the place impact comps you New next a impact more similar would year little half for have of are half have the second of

terms of little jigsaw that etc. projecting then a you your bit are across rent it's a that, So legal today puzzle of expect different mathematical of beyond in portfolio terms where you in things it

to potential think assets So each different of it impact. the answers their the and to relates owner-operators as from you're going get do I REIT

XX stabilization it And that's for you're surprised relates side from sort statewide, New component So us of the component impact rent to York. for is years that, things XXX-a programs then about opposed in burn of as I'm which the in be free units, XX,XXX that stabilization but not those about keep we'd different as how of us and about it off looks now, the to hearing and that. mind fee it

So it that's New in for York. our about think how portfolio to

AB a couple it. of terms to in California, XXXX of In different at is it ways look

of portfolio went and tested and XXXX, have of in has in our us, Northern sort XXXX XX% California. been been? one would back XXXX And you back and impact we if of is way, if the our point back said it XX Southern either adopted years, AB First those would what basis that a portfolio. have about tested about for of impact for and each That's been

call it points full So basis X for the roughly year.

basis January the we've And And the you what probably today we know embedded that embedded into effect growth point reset said on went a QX regulation. had drag impact X X, has for Xst given done It it about XXXX, relevant on XXXX? our which of is other your then as reset and rate does if October the is how look basically to growth. we leases to question XXXX back

not, it's same-store the that's pool So overall. on

environment, like that meaningful revenue. that, So ability look is don't piece, generate bit of lease kept people short-term you're to our not have premium various but think piece into come things a to caps about going it's that, but just are those it's a beyond but month markets, to whether not, play CPI there more tends always function extensions or the little leases the the it's to terribly that month then not certainly more hitting really meaningful, and in that the market

rent everybody because of impacts it leases LA And very year million so, sure recognizing we tends a mentioned that do is short-term I'm the that example, not this some because point, as at material couldn't to $X fire the profitably. about an but this if in impact the be of was caps those and we

need. all have we're lot at maybe kind you more a that's different now. it of how at those components. to you But looking So, detail, look of right than That's

Rich Hill

for. that the looking was certainly I That's No. think I transparency

I quick that growth don't should and FFO healthy you follow-up guides maybe it. 'XX. pretty guide thank Is on that. question full you year in we I some give One the if So the looks specific XQ it apologize you there quarterly I And prepared anything this for but like think driving missed mentioned in year-over-year imply that remarks, about. recognize

Kevin O'Shea

Hi, as because by lease-up our the it from expenses O'Shea. for FFO typically expected XQ see 'XX specifically XQ core We and communities. we as primarily growth FFO and Rich, ramp through of relates this do development focus is to by a development NOI ramp seasonal is operating driven Kevin 'XX. progress sequential the in to core and year The being

two So the main those of are the drivers increase.

Rich Hill

Got it, Thank it. it got you, That's guys. from me.


to go Jeff America. Spector with Bank of We'll

Jeff Spector

you. a had follow-up Good morning. Thank I on supply. question

I discussed XX%. year, York you do guess, New think some around down have said for comments some mentioned, you qualitatively, mentioned but that markets You stats. exposure numbers of you put I supply, your City next Can you any some around you some the Coast West

Sean Breslin

is Happy Jeff. Yes. Sure, This Sean. do that. to

big more about then the in about market, in I to about concentrated But XXXX on offline, units. through of in little go A West in Hollywood, happy you the with in that's kind West terms and chunks. XXXX side. San the a And market in the of in Seattle. Francisco, markets, flat are other bit we some that really mentioned are Coast specifically, lot Downtown, deliveries sub-markets expecting in the of East XXXX Jose those Bay, units it's the if but West about X,XXX across supply on deliveries helpful, California, around all LA So it's basically town, Northern Hollywood, San of Korea

Jeff Spector

last more into 'XX? of this front any that is year each And a few seen supply That's half there slips that years. loaded for we've first helpful. or Thanks. the Is chance is slippage 'XX the

Sean Breslin

across No, quarters. it's it's the spread relatively pretty, evenly

that some on of So, seen based historically, would expect point to your absolutely. we've we what

XX% of somewhere XX% thumb experience. rule in sort to Our has what we've range the seen based historical on been of

So high give rise wood-frame. more delays than product, of you some perspective. the in so the And I'd suburban more kind say urban

Jeff Spector

unemployment is obviously demand. one growth low has renter but Thanks. your been for And know slowed wage I has about, on talked and strong. just then so job follow-up growth you

rents? out about give renewals how if days you you're So in putting what pushing for you terms thinking can that XX maybe are over XX next days, comments know out? on any of I don't the

Sean Breslin

jump historically equation. that Sean. wage But is correlated number when variable of sort others this is chime or Yes, Job rent in. Tim highly that the a on yes, Happy is it two growth. we growth, in with look and at to growth most can

in with people so at are example, for healthy relative January how that XXXX. how communities, level much moving it. of our kind of gains, we and move their apartment that is will to the that's come measure And those look an seeing we move as January it people wage into is, income XXXX is tend of into to What we but

get that market, sort, it, professional growth. option or may growth choices. data don't are X% services, growth. income, of may etc., about X%, have tech what extent X.X% the wage the every talking the how we're we're from I we're wage wage We to the income things of growth financial the services, in that certainly not ADP raw certainly but those seeing necessarily include about But we some earlier they are closer supply of of healthy of when paper And the renewal, seeing stock numbers to that on data, or think but people wage influences in is but whether BLS seeing in with it's data. the kind referenced in levels healthy the data, line kind ADP

the demand comes environment really to how down looks. it supply we So think

mid-X% about to Right terms offers high-X% where going November and offers would talking expect out been renewals now for of high-X% in the specific as renewal fall range. of to year question, in December stuff the in quarter to relatively answer are range fourth well. I terms and to renewal though, to the we mid-X% kind case in And the continue through have of as that be the move we're

Tim Naughton

Hi, Tim. Jeff.

thing Just maybe add. one to

the decent I think maybe population, income you're the X.X% population. to of growth quite our for terms X%, in relative right overall the been has

the until been challenging has or outpacing consider more the one thing I growth. outpacing quarter is where I've up the side. last of the Affordability happening for think on rent been has to sale Case-Shiller become two, what's is

rental helped that's think I demand. So

seeing, I margin, X%. around Some print of a had this the right you're think a Case-Shiller now morning,

inflation now rent of more fall with in with inflation, for start sort You're to housing growth. seeing the sale line

think for one it's movement housing geographic our home rental a quarter. is just in the but see be market I up balanced each not of overall, next markets, flattish quarter might rates, between down per relatively the across So pretty and starting to outlook ownership you're sale

is really remarkable. it So

that it's is surprise housing just now how in Just kind into in of seeing about maybe terms it. remember be the sort overall as XX as equilibrium expansion, an of market, and shouldn't it I of but years right stable can

Jeff Spector

Thank you.


Austin next. Capital Wurschmidt Markets KeyBanc with is

Austin Wurschmidt

everyone. morning, Good Hi.

and convergence about some about talked other of be rent debt Coast below same-store bad headwinds, where have it change the growth necessarily the of show that figure. this in lower incomes West year. revenue that wouldn't time but think I Coast some first this to East across the at talking kind was we've guys And seen you've spent rent would effective was up You the in and last quarter related time this like-term change like-term year really that

So about I'm forward. just curious moderation that and moving what's we think how should driving that

Tim Naughton

is this Yes. Austin, Tim.

I growth it's about we economy X.X% roughly before. growth of range mean, job if the demand in jobs running more in the downshift I from X% think growth you've seen million were mid-Xs an overall. sort versus to now just X X% currently

overall good. stable. relatively has Obviously activity but from been stable. market mentioned, I a Sean economic there's across our little market, So relatively been down bit the pretty to footprint overall shifts it's being household supply just formation market But it's as, because been think has

probably economic down think a activity most. is little and the growth impacting the margin what's bit, that's job just I

Austin Wurschmidt

it's so, mid-X% to new assume being to the fairly stable. because And safe high-X% you've that's for range on mostly talked renewals that of about kind side lease

down a So just traffic bit overall is

Sean Breslin

or no. down much I how on that. that we much traffic This is like something depending things Sean. mean Yes, think you can and engineer up I traffic too is spend about wouldn't either because

change substantial government, I procurement I bit the have a Northern And just the is is a where has been same, supply that better we're might increase what's down you and Mid-Atlantic a lift, is, what little lot expected. that from there's it you in is with the it's think demand been lift happened function at pretty California lift Southern if we but if more contractors we where you widespread. of you're look gives in than in about anticipated, because of job but the much the see seeing pretty and rent brings mentioned, really a in growth as

point pretty say it, sub-market of kind to it's more just So which and or driving macroeconomic market particular you one oriented. that's is generally broad, can't

Austin Wurschmidt

on And the I you is I'm you've pipeline $X Matt within I development one of then, spend being curious the in good a appreciate detail kind look provided once remaining for north what of like figure think targeted of second got bit the XXXX. you commence you've remaining that but starts the limited And here, just got billion thoughts. XXXX. completed does spend on you've from the me

of future kind that So like. spend can you, if you in, look factor what's that all of


then to speak guidance I'll wants of we what that Obviously, any Kevin starts if Yes, to don't quickly year. anything. next in be add and I terms might provided haven't our know

fourth we're here this start in to quarter. million think I year additional million expected $XXX $XXX the to

which So, some already most which but not. of spent of been has has

stuff guess currently spend year-end this a that you would on that's over project quarter we it I then that way. the out and So to probably out you add you take under if incur

condo I aren't numbers. pending So as only in those even mentioned tick as quarter but the well sales disposition bit, coming first little it asset up in also sales that we have a might not proceeds but

Kevin O'Shea

to a year investment think close we're One everyone. so billion redevelopment the $X is million, side Austin, and or way starting million a $XXX Kevin. spending of million of to the this our spending about house; is $XXX development in $XXX about kind somewhere if about business we're in

you're activity like for investment ballpark So moves what the of looks bit, million $XXX if it spend. sense in a get of little month to a of that of investment number in a flow kind somewhere just around trying general certainly a terms but us, it's probably

Austin Wurschmidt

That's guys. helpful, thanks


Nick is with Scotiabank. Yulico Next

Trent Trujillo

going so for This building than Loggia average or back Park higher price so is Matt you Hi. sales anticipate to whether a a you still go to is Trent average softness far condos, with Nick. The priced trajectory basis? Yes. on the with the units the little in Good higher mentioned market, targeted price left monthly lower quarterly perhaps what sales the morning. priced and some some kind sales do on of

Matt Birenbaum

it's Yes, going Trent. sure of first all, so great. Yes,

six visits running a Corcoran months they're we've the across X visits the They them are past week, been XX Manhattan us. all week. a deals, for marketing is is Over Sunshine average in marketing

people a getting we're people lot able to helps It and the there have to settle. we're and it So buy can product see is close that traffic. of and being actually

So, year time. buying plans next into significant to a particularly they're to amount of and not of going buying and not off be and having going wait

ones So million. far yes, when $X the figure launched, $X.XX we was building whole we've unit. I sold price I we The so mean roughly million across we think the are said average a

and units a will you're very bit building super sell when right. average that of top they those some So skewed the sell. I premium at little mean is by the

and the or predict to bit. might hard move it's those little when they a will project need So, sell

the bottom while think a the top the far, at building proposition We we the two reasonable little to we'll hope there far. a compelling than be how it's weeks by day Obviously nice more we've sold declared thought value we have goes. so so frankly be weeks. or General, or So is Attorney got to like across but to Right a continue of it three on We stand process the that has weeks, balance pace. any to five to a building, more kind market. week six effective now, able we bit been see of take is average, now the at the we expect probably plan where which would

have And City a recorded we the then loss go anticipated. little process we office that had taking tax originally the by to to and longer Assessor's than is getting

we of, to of little that place to longer the quarter market the make settlements, projected the to four guess the of year. roughly response and track going continue seen and, just expected, I Assessor's as pace that's we to up can seen a a our even taking yet a everything thought, any so again, office had and get as slowdown in has there's been of at haven't October. of just office Assessor's well the of kind in. little pace in two-step the that But and back City we even we longer first the It's month we legal a that, And we're sales through settlements sales then than us So taking City where on beginning process six AG. because we've for here start

Trent Trujillo

you're the Can sticking That's talk very just with viewing mix how about or and the maybe a added what good detail. as retail you're on progress space, making targeting tenants on space? overall Thank new little you're being well. bit you. the on that you that remaining Maybe available like looks the

Matt Birenbaum

we I have bit. mean Sure. A target. little

now. I should think As opening any day I mentioned, be

the the Financial as they're before to second here ready getting open think first Services, year of on the tenant floor well. Our I end

leased actually and tenants talking restaurant that their pretty of to, tenant floor credit different use that's the high negotiations advanced One to more the about start We in here we've far couple ground out of space remaining January, floor; the have kind use a groups. one other we're build group in got is of second is on space probably fitness use and quality a group. additional a of should a

ground then options there some space. and we'll floor we of interesting about the see So remainder the have

various from continue folks. to interest get We

traffic. mix So kind interest Target will different, just of because of We attract an do think further to interesting it's lot different a they're of tenancies. drive going

amount a location obviously street, traffic anyway. Now of tremendous gets that pedestrian

nicely. So are again, proceeding things

interest get and to phase years that NOI from is nice the in as going to spaces couple final getting leased. of are those We take a

Trent Trujillo

Okay. And one may. if just I more maybe

develop amenity-like or that's $X.X to development billion, that you're how you develop development rates how pipeline, increasing to the over on how change mentioned are maybe guess that where you looking at if initiative, With if be community some to color successful, that does that about viewing helpful. would pilot I an

Matt Birenbaum

and too early kind pilot those we're going this under community going like. test one validate do the probably have Again, margins it's of market to it to our is. is to kind Yes, see what say. construction, of for little Matt. case response what look a We that's We're

it's the I it So think the would another is way toolkit. about tool in

other gives phases, haven't improve it could in larger where we or pipeline to really any might the I the deals can have time. and it the particularly price development if and underwritten different economics kind open points which that offerings, us multiple provide different more the and but segment us it We validated up to think on of for over it's could on sites market a of model, help service opportunity sites little

Trent Trujillo

for time. the color. the Appreciate Thanks Great.


to John go Capital Kim We'll BMO with Markets.

John Kim

you. Thank

have assumptions you has Your yield changed this the your been of on wondering I'm mix down the projects is rental X%. all. development any costs, development pipeline if your higher trending below reflection or expected the of at of

Matt Birenbaum

mix. is mean some is construction and product which reflection time, This Sure, a point of at in basket is it I John. Matt. the under that's given any of geographic

been move is, growing XX and tend years bit time. a a reflection have of, little certainly to costs faster over will It into we rent. respects, as are cycle while that than some a the around said in we've So for construction

stuff last balance, So getting is value very the tighter, find by quarters over might cost about. our as or the creation be And strong in way, still harder a as well. down quite the deals we've is there and on although little is bit deals three capital that to a it creating two talked of we're

John Kim

it. Got

think you product out, pretty would cap a follow-up growth this returns. think then basically be lower will IRRs foresee lower how impact the similar service limited by your do And Do exit this rate, do offering with a you're to Okay. you costs testing a of that being the higher product? you kind on or offset

Matt Birenbaum

but early the to the that same things, segment cost out would as of a that of John. amenitized just heavily high-end is and that's don't of but a strong itself today because by it customer is lots as It's have first product I labs time apartment less bells and are which necessarily that's whistles which there under-appreciated customers value under-served well, of the new concept the probably view is the nice of there apartment there's those other and costs lot trappings, hidden we market. may built the too really being tell, finishes mean, the XX% again, provide being want our other lot over all a and suggest research be to

So why market. primarily it's impact its rent cap than of any that might like asset the reason just generate. And seem can see cash hard growth to don't say by or rates. rest it I how different the it is would valuation valuation does be significantly flow driven the

different time sure anything but expect tell. will I'm So would significantly I not there

John Kim

basically developers developer for emulating or you a you Is who are are out there or leader? that product there being another

Matt Birenbaum

to Yes, it do leverages service, for I Virginia some because it think upfront one this the really down house enable example, profitably our back and it investment we of Beach. can is of technology mean, reasons in in center we call require some does

for on-site leasing. we So not presence may an have

of some CCC but enabled, interact that's also and that way. with tech call that can that's they of Some the somebody

So are trying I'm not familiar with others this. that

Tim Naughton

a more are they're that they've highly risk-averse buyer take on Tim. risk likely production terms still a to is customer tend doing something Yes. amenitized sort be mentioned, Hi, little most of is mean But in institutional as research. got and to to accustomed different. John, we the less from of Matt this of building, coming who buying guess is I if I builders customer it a merchant and

enough compromise of the research done less, their are existing and unit to like we're of the would We that the don't sort services all providing to of all amenities, not more they're that or but quality in the and something customers of with quality and they finishes. assets have paying value plenty any necessarily we've our want using today because on they the that know

for today what something continue it's base they and match think provide the and better just So a have customer taking them we existing even it we value. that's really to segment

Matt Birenbaum

of more we've being as create tune in to to the certain somebody also being value an is active the may else to built. what will limited ability in do developers. We about the that market talked product segments buy one just such has the opposed be what have It advantages with

John Kim

Thanks for color. the


will go to John We ahead. Please go Glennie with Stifel.

John Guinee

or cap million. and worth million in X% Quick you value Great, one I on all question, you now you it if unit. $XXX you safe your $XX the that that about condos say at like look so basis looks thank at think said $XXX and stabilized you million million? $XXX that's a breakeven $X.X said if retail retail, you a say is multi-family you. to the at this Is maybe It done, your NOI million is

Tim Naughton

this John, is Tim.

expectation, between our we've think there $XXX shared million-$XXX million thought that I here. I of before value is think is we incremental

million, to based that's to about but not profit where expect there pricing do upon at we scenario. we retail mentioned breakeven incremental no, the expect today priced over current is make million, a So is do so the today, average that's sold unit Matt average above money. valued If unit the were $X.XX $XXX is

John Guinee

decide X% heart that then have merit? And X% furnished And to OK. of from in years? couple are furnished going big follow-up you the Right, to your a of what's units units, on change

Sean Breslin

it of is in I things, merit. John, couple has mean is why of this terms Sean. a Yes. one

the we actually will or it. consider a has do research apartment As fair some interest either I interest in expressed identified market mentioned of of in furnished we about that XX% amount prepared remarks, home a my level consumer of and

had so, communities And in in tested we've, our last the we've across the of looking XX have we apartments, people that just for furnished sample come months anecdotally but portfolio.

are it's profitable pretty steady do We some and a opportunity. seeing think therefore, we demand

team to on do here take which to scale So, that depending mark getting years we'll to a to we it, could three X% to the be together yet go. years decided at two and to have able that pace

So will from units thing of substantial. today, that call where are type as XXX, we more it scale is we it be XXX to which something

or get probably grow will we and much then X,XXX about in go won't a fashion linear to probably faster. You

Tim Naughton

maybe a couple of add John, just thing. to Hi

own things much want perhaps much generations stuff other a once there's to don't as worked don't I preference, those as or We couple of particularly changing think that stuff just need pass. is just and to own consumer as among XX. as under

So I think piece. that's

piece I business can that it think that of make of is the that actually just companies scale do there this. many we aren't another out a have that

going So a owns probably that if or not big investment fund you're units XX,XXX this make you're business owns somebody units, to X,XXX XX,XXX XXX,XXX or into versus that units.

that's things kind it's business appealing those of think think opportunity. created of I what combination So is a an two we

John Guinee

you. Thank Great.


Street We'll Green to John Pawlowski Advisors. go with

John Pawlowski

On you like-term suburban, East if out Coast Sean. XXXX you the just trajectory Page what X effective change Coast versus versus rent recent the the does showed that? in like West look and Thanks, zoomed swapped on if urban

Sean Breslin


the at, for our So portfolio compared market overall. if you're looking as just John, to

John Pawlowski

suburban AvalonBay's Just portfolio. urban versus

Sean Breslin


perspective. at it from that look changed all urban, suburban you flat that suburban. infill they're were because classified And basically the year-over-year ways. different a X.X% has include when doesn't assets, So suburban and they and There's versus on basis, that

throwing true is out this those urban and of kind strictly So things. urban definition definition of strictly TOD and versus all strictly suburban, true of

similar. if converts has with over up line to Down obviously we suburban as the going well. been it pure in the pure quarter. urban very not last it's they would but for X.X% that's quarters, and the at the full four look But So are the past, way you it, define different the

indicated, or across a just looking AB, of Tim you markets, are urban you're similar you're suburban as different those So at whether or convergence the of looking sort at all variables. pattern looking across

John Pawlowski

thoughts that then Okay. forward tug-of-war variables of lights your are thinking trajectory on alluded And to your to the right just yellow economy winning Tim, Matt which as you capital the curious had those the between in now? improved mind some how cost and in out perhaps starts about you're get moving and flashing

Tim Naughton

portfolio. different that fund, to it's not match reasons John, the of I some it's in ways, you mean stabilized why your extent match the than do funding one so we

funding of in you, we You've that risk already the you apartments is got developer the that but owned. much start But XX,XXX a those completely that are same everything pretty true the standpoint. assets from rate finance,

as puts So the what I past. if us just think talked more about position the later you in cycle, it get we've in anything of

deal you as many some we to Just speak to renegotiate any you land option, as or to drop to a and to it contracts flexible, give flexibility be to have to try either to push have potentially inventory a up. can out or deal don't

to had projected it. makes But incremental we if of think now, cost sort on most against a talking yields we always X% above could and marginal our still we So, where when well of we think that capital it's are asset and land in markets. of right it's values you're our sense replacement is, about still, costs buy still sit

because a in as not we've seeing adding anything maybe So to markets. of just development pipeline up new about that $X more been dry probably start private value about the focus year rights been that it's and the much as in ore, billion in been opportunity starting our, a billion it's we've m set, when $X we're on land

John Pawlowski

you. thank Okay,


& Goel Zelman Hardik next. Associates is with

Hardik Goel

just not in two just my for which you've regulation how see versus five, you years guys, how environment are Matt, maybe time you. long just and I best? which question. about I've got a markets, to regulatory California Thanks for the a and maybe thoughts wanted on veteran talk are have XX XX Hi even on you? been all your versus ones get greatest taking today for ago standpoint or markets multifamily development a the across the maybe barriers

Matt Birenbaum

barriers currents constraints in of rent period other and there many the many which in has created through, it's be still that's the in rent process, that side inflation in it if by turn turn driven of there a period. The part very from merchant gone cross growth supply The you're the to entry have have up, in high particularly and difficult makes project, hang for investment environment well have interesting which in anything scratch, of of something very, the to ways, some for sequel of but are markets, it are the over provided and to There time. starting very that have in a the our is control amount in to it sustained excess California. time of see the through the you you get Sure. obviously it if in time money regulations you builders dollar

high California, of ever, I they top have the years in a higher as that barriers LA labor JJJ been The see, ago are now think with we may as that of be on legal and in some put challenges so passing of requirements couple that. the

about a prior as the planning, of from barriers it has on If long-term. the maybe been policy I'd of of this some on the local here point view, less competitiveness of transit oriented frankly have like here improve this but you the around economic rent public development landlord, and say region one growth landed the cycle in that some cycle cycles as of benefits is really been jurisdictions great a and better the Mid-Atlantic, frankly than think is lower as focused

very in cross every some a once litigation haven't suburbs there advantage generation. is both bunch and in supply housing seen some regulation, to Northeast, in cross land affordable been markets currents more our XX we've for is of some of currents that get New So that the and in some one-time sub-markets sites and supply much year get and different in which and Jersey, there a suburbs directions opportunity of having a the able then take of because kind some of teeth they're to constrained just little

years bit X over or there more So may see years. next a you the XX little

small similar communities. lot which a is of obligation had a and jurisdictions certain for forces market Chapter there we've Boston, of of XXB the with what suburban Conversely, Boston, a to suburban have rate housing, lot amount integrate they XXB, now. take then in our called affordable provision our jurisdictions success where Boston towns that into met which years we a

than that. over because cycle saw prior more we anything of there cycles, may couple seen, we of next if supply over the see the So we've

does from vary region. region to really it So

Sean Breslin

markets office, financial LA, maybe true guess, this are it's relative than economic hotel. of areas, add and in been barrier you've the as generally comments, thing been in Matt condominium, a supply to suburbs cycle why Certainly the barriers best urban exception our cycle implied in because cycles mentioned. the with in relative I just it's of versus one has maybe elevated seen certainly California, and to remarkable it's regulatory seen, true not to an barrier, that's Steve, Matt's is reasons urban case it's regulatory financial maybe the sense certainly we've barrier Northeast, made markets, why one to and oftentimes, relative highest the prior in higher the been what the use in and and this been

I think X% this condos only has quarter of to have about supply. supply for of accounted closer a multifamily prior and cycle been new cycles

So about I it's penetrate regulatory continue the Northeast think be there's that markets to a standpoint. toughest that think few suburban still things cycle, are the to California from are more been a, I largely I unique but bit a think

Hardik Goel

easy; the pretty And the lease realizing probably response that. for received maybe volume quarter? rent about question, splitting second it that over a thank new power one that is is talking my pricing renewal. low you the fourth by That's guys. and lease, And blended just quarter, Thanks I so leasing for out best just in

Matt Birenbaum

QX, for kind pretty as a or QX X.X%, terms stable to Yes, few drift any next that the and and breakout, relatively fourth the and blended through I on expect it don't renewals going we of was also we quarter you peaks the year it late it and QX basis move of in as was specifically terms the over earlier, forward typically from the as stable been for then early the that in pattern move-ins, X.X% and of down is see reason any be was be to seasonal during X.X% quarter different it's mentioned, you quarters. tends a it comment my metric all into and that get QX QX to in

Hardik Goel

you. Thank it. Got


Baird Drew with next. is Babin


on Good Drew. morning, for is Alex this

a us, on but rising in have CapEx. it I Just costs thought modeling when to Preservation us in I pretty for you trend expect if it like and sizable just into how quarter we driving any one you question growth looks year-to-year over what's it here, 'XX? obviously rate XQ provide color growth that pace, play the that like be XX%, Asset quick can run could current looked and year-to-date came curious that and to some was should seasonality the

Sean Breslin

as run projects, if is to use to way refresh I'd about looking of piece Alex, that a of about spaces of of X% you a is little hard that's seasonality at Yes, lumpy I NOI well, the Similar about X% the X% it range could amenity return that's modeling is you is of There think quantify. and it. maintenance going sort how it, such NOI. that from be we're our Sean. that a rate, probably tends a bit has the it CapEx to that say some maintenance X% But it'll that to call probably we But remerchandising is probably of right, year-to-year. sort to to although of be sort CapEx from is what be perspective to that in a of this of XXXX talked

Alex Kubicek

That's Thanks. helpful.

Sean Breslin



We'll Sandler Alexander with go O'Neill. to Goldfarb

Alexander Goldfarb

you and questions. afternoon the good thank Hi, for taking

ones Just me. for two quick

upfront, First it hear I maybe didn't got lost. I but

$X.X of the year, the your for you're trending OpEx Your for $X.X, guidance to $X.X year.

So to what what in items is quarter are the trend able higher going your overall it the within but the is, FFO fourth it to manage you're sort OpEx? down of the or they're guidance, bring

Sean Breslin

Yes. Alex, Sean. this is

quarter every done that changed a projects bit guidance of reasons are mentioned so, for reductions good FTEs. to up of bleed dramatically haven't lumpy lumpy. of credit because as through marketing R&M was to received we payroll, I seasons credit the year our substantial marketing was a QX certain continue we earlier, related little insurance number XX%, We when is and down in we last year. see a I is mentioned renewal in

result mentioned. a I initiatives the As of

I this would are. So point, at comfortable we're pretty say we where with

Kevin O'Shea

pretty quarter 'XX, evaluate in at obviously is that year-over-year as The to of thing prior year basis tough you you and OpEx year of need had growth about with this you Okay. XX OpEx happened. the what key as year. at rates year-over-year we last look comp growth it's think here. X.X% the as to the driver sort in so One a of fourth in points, more probably Kevin a

think I is So year. sort terms in but of what what alluded it's of that prior there only in not Sean lumpiness spend, the happened we the to,

of need modeling. you to that kind incorporate So into

Alexander Goldfarb

people lot properties I the there's And of and back guys buildings certainly a light understand of to I walk helpful. think would space about part you light of to especially but second amenities a the on customer the be that's service. the that of Okay, able point then person different the going is what amenity makes it from you're that REITs that sort new initiative doesn't just used, get charge rents to sort and in trying others you premium

request diminishment pay package premium that. giving will trade-off around what no is anything So that to absolutely a like or catered if the the of catered they're make there testing your feel have in experience the not being being them, to or relative or that they to you having versus have people between people do request maintenance they're how rents tenants a they that

Matt Birenbaum

being is than the able I'll they in I most else anyone things a experience which whether opposed fair want and of as Yes, if like, for in us you way car research, upon whether own what when think specifically they actually a that respond don't a unless about today, Amazon the to through if know one of shopping they through to engaged can their buying little on it's on focus groups we what work consumer they terms they surveys Alex things, some do someone a their lot it's whether on other both do we've to for today purpose. to kind bit hand of done through, people of consumerism that dependent needed things lot but it's it all shadows, with holding want to and of be part, of different be chime work to want surprising, consultants a kind this else find you this might

social want And community touring sales come and an the of of leasing answer a want the most service. everything really so They them is them a they want in consumer to that research and to to or our except salesperson show the the like show spend a standpoint, in a and see office with there. they no. and Regardless the around all online hours, fits side. kind kind that hour on go they can, for they want part, schedule go from a meet to person segment way they selling want along service the they mature do When tour so more, one of for someone want level the then there. maintenance It's of if of to what's to segment, and us is don't right

give response market dishwasher fine there service, is white necessarily something decent be the You're perfectly that the how their responsive and important value to with, may have it that fixed, XX thing XX if the chunk some picked today, absolutely lot, tell want but they're to that the correct they hour of working demand. don't hour cook a network never long them a to the have to hour they doesn't XX it as fine you them segments option to fine. in service as you The isn't glove is that just

lower are those which not So capital I I for don't really cost, market And XX% but that new it's sort of they a fine paying see things recurrent value they think the it's street and those has OpEx for the to the the prefer my responsive, remarks, of space and than heavy do service so paying in people that the that things segment the value pretty it. option. absent aren't mentioned a just brand that continuous down way in to people XX% a on costs as definitely would building more can services OpEx high for amenity as the only it there's opposed prepared rent, market demand the segmenting and and

So I know Tim, add you don't want to anything.

Tim Naughton

low want the I levels I don't Yes. of necessarily you touch low of jump if I service. hit think in. proposition necessarily is part mean means lower and as rent here think else necessarily to anyone No, it, value

you're going of high offering. in I to low think level of of with sort tech a have high service kind touch

amenitized of a the pay price it staffed. community part depends issue. more that and value think be absolutely would fully a would the they I So is on but proposition that comparable Alex, more lower on

Alexander Goldfarb

Okay, thank you.


Jefferies. We'll go to Linda Tsai with

Linda Tsai

in types or if just for leasing opportunity reduce technologically to exist driving thing The thanks and how these you've this much taking the portion. driven previously, Hi, my you're question. I'm maintenance, entire further discussed this apologies efficiencies portfolio expenses of is across just initiatives? through wondering a

Sean Breslin

across Yes, have the that's Linda, slightly this that the in is portfolio, is segment across certain buildings would deploy building. customer that we different Sean. dependent The nuances it might on expectation it

XX% service a just high offering, we we the of things extreme would that's a that. be a option as to But that's tour, deploy other for time another at schedule like rent lot of that touch, where expect a high across self-serve, So, they talking the they limited but it buildings and the people one portfolio as were one them building extreme, to probably default. can be if of very sort be our could the about convenient maybe there'll have that'd like

on may, certain or we of customer usage advantage entire taking needs portfolio, the the at across leasing and profile services we're etc., the So different each of opportunity for one. based

Linda Tsai

XX Thanks on the could for between shown The leases are slide you Park different, retail four and different how signed? you've then Loggia, average then what's that the the on for And about the levels rents the term talk clarification.

Matt Birenbaum

hi, rents Yes, is levels. This Matt. Linda. The between are very different, the four

than a rents might second a the I year on basement the floor about the bit then frontage, about, maybe that so and the call that the think but be to highest bit floor and on are quite and of or some ground less that. XX% we the provided high with would level a be little than basements ago you're the thoughts less talking Broadway that its sub-basement XX% sub-basement maybe rent,

based vary it generally So the term specific The on leases. space. lease does really long-term are

long-term. lease, that two probably I I I XX-year terms with were, generally beyond probably first exactly, into options probably, but I they speaking, think or extension terms specific get remember been one anchor were of some they think the for leases, don't leases think have can't I our relatively

Linda Tsai

can if units for we Thanks units just And apartments The economics these are of attractive market. demand furnished these there for that. fewer are the the across one. fully then a final more available leasing assume for

Sean Breslin

of less supply there's Yes, units. those

of there certainly premium would with be furnished So product, associated the a course.

Linda Tsai

thanks. Okay,


[Operator go now Mizuho. Instructions] We ahead. Please Juste go St Haendel will to with

Haendel St. Juste

about you're Hi, here on lot good want be for some talking expect and Thanks. required morning good or up just of I also to give sense expensed us to that looking curious about thinking follow or you're here should a can the furniture talk of afternoon. capitalized? you premium question, We're if Linda's we ROI. or maybe

Sean Breslin

this Sean. Yes. Haendel, is

and different Marriott if premiums. you couple variety a others tell to leases a risk from about a rent What that you'd went do been So I unit inventory Operator. of party. to would that's double of testing the things. find rent is comparable typical that's relative and sort. different for a is of can typically product you just We've there that is, our the of furnished out what base taking company has that's be a signing unit third things

that need to we cord a bit not some premiums the some, so for cutting you be but we maybe said the do. above little customer are could to probably with but about surprised XX% a think inventory risk to utilities various services, cases, own wouldn't unit if We and base the generate provide I differently, we include may in rent cable,

rates your student specific furniture a At for five think range over at talking the it we of to that's useful seven probably come be years sort life, depreciated the it some this capitalized seems as we're be X% to year, to around or so… that to then in depreciated there'll period. area to over And reasonable question a been to back seven-year year including point then others is going what proxy. expected years the to relates five-year in it's five expect a terms of but so housing of We've

Tim Naughton

Haendel, here. Yes Tim

Just to of be terms clear a you XX% the if in premium, get premium.

of furniture. premium Some for a for I'm of Yes, these be which be that the tend going short-term on days. leases a based months, would year tend our average not average or to be, be to nature XX than to less residents

been closer six seven it's to to Sean. to-date, months, months think I

is that's return, as well. a exposure So that sort vacancy factored of additional premium into that there XX%

Haendel St. Juste

those term of Because was more thanks. like that numbers I appreciate helpful, That's shorter thinking but sounded units some corporate color.

Tim Naughton

think I that's No, right. Yes.

I think a a like is certainly… very, to the times, lot some Xx, that of premiums hear when very of you short-term

Sean Breslin

from profile that serving business, there's lease would interested that some XX a the something of their customers have that appropriately that lease and just, Yes, We a but leasing XX might be so exposure that's certainly are slightly manage at month in we taking but operator standpoint longer. want we've expiration of far days thing. type to been like time

Haendel St. Juste

it. got it, Got

online then a Appreciate like to your I Pasadena Okay, coming comments to suburban County. more bit that. more your you're you're in what and you. the about of Orange thank SoCal back for focused LA, on downtown so portfolio, curious go it seems wanted is some first thinking supply earlier And much more supply thinking about in Burbank

your curious is commentary LA. similar on supply the urban with portfolio So a on there about I'm And say we're seems maybe portfolio you're versus how the more more. some coming your bit Boston, downtown suburban thinking Thanks. performance suburban then of more versus the again, to be core

Sean Breslin

Yes, Boston. the increase supply and sure in briefly, Correct. sub-markets, and core be of in suburban call around, our reverse majority order in of about the starting concentrated happy is portfolio in in that Most Boston. urban to it will talk maybe

develop number quite a to well. suburban continue We that of performing communities are

that So concentrated most well is relatively up our expect would downtown. portfolio in environment, we that hold supply of to given

City Center Mid-Wilshire, is, as and and I but kind In then Warner in about there's actually Woodland then mean it's comments I I South a Koreatown, some supply mean specific bit Central, along mentioned. terms Hollywood your and down of heavier in LA. of coast little Culver the Yes, LA the, by the Hills,

little of of terms a or We in So have bit in portfolio, anything Central our don't South in Koreatown. exposure Hollywood.

seen face Hills there well last have over of done three the We amount a assets has has well, have that in which relatively decade Woodland fair two, assets But most new quite more points, Warner of perform supply. supply tend of Center. sub-market we affordable to the price in the

will in So well XXXX. pretty supply delivered in be LA, think positioned given the where I terms we are of

Haendel St. Juste

you. Thank


We'll Nick Joseph go to with Citi.

Michael Bilerman

a follow-ups. it's Bilerman. Hi, had I few Michael

of to just is first The forecasted the How back much retail represented by that Loggia at million the feet of leasing. $XX square NOI. Park The out is of XX,XXX

you how secured? effectively, the million So much have $XX of

Matt Birenbaum

third didn't half, it's had that well, more it's roughly our will it's of release a a a kind little place. of million most bit where than lot it early quarter of Michael, terms what to can on one I probably Matt, numbers a based maybe tenant through But little half. include we and is that's bit guidance in in I think calendar already of XXXX. give in end $X

Michael Bilerman

the relative that marketing. to so through Arguably, mean lower you street you're still rents that where X,XXX I you while it's and overall the floor have the basement differential two-third went you're rent clearly leased between second

why that's just, of… picture was So

Sean Breslin

Yes, but I a lease rates, mentioned $XXX map, I over a before mean Matt as ranges Michael. Correct. think all well the the XXX below to upon over depending the foot what, are foot.

the on you're ground the floor. parts of If

the floor the forma first So better but high be taken, have parts left what there in it's, first is some leased that's space to on of think we the more balance the value don't I pro of for it of in the building. what's already

Michael Bilerman

was and impact right. to All the been of And that's what done to what's trying flow I cash come. what's

your company. or above selling, do because the portion mindset core that to you it originally now JV-ing and even sale to intentions then number. a a not selling would of and part condos be retail anymore do use, take JV XX% arguably have the the a on to I is to , or Then at where reasonable be this that is So on you retail the

Matt Birenbaum

that. and point I a we, to optimize of likely would on value Mike, the some think it's at the this, question on when sort actually how when Yes, sell trigger just really we pull

then and is tax a there issue. So,

balancing Just to taxable the transaction, of in any And this it now that have to given try might manage in just terms versus minimize is condo proceeds. we that the profits will it a taxes. to

Michael Bilerman

about, you funding. as And think development about earlier had then someone asked

of you terms As I the go guess forward arguably you this and the capital in into away in that squared of you year should have and how capital that put year will need development also will condos, capital XXXX now coming you we well. you as guess we all you earmark if about sitting start selling that hold. building next and intend in upon you which going to the able to to are back fund I the should you place earmark to how think

Kevin O'Shea


this Michael, is Kevin. So

will well. You're sale of component beyond additional likely year's the and as sale proceeds right, year call activity be debt our receiving it refinancing may to next debt There not do from to activity. an be that next need mean, for asset condos markets I the funding equity or anticipate important we disposition beyond look that may we're

of in bit attractive that little increase I budget are As target X.X kind now together for of, some But fair assume next X to profile leverage, capital year. certainly, think leverage you in so, given it's our scope we've below put X our know today. when leverage how turns we leverage to turns that our for we a typically to markets target got today from debt

Michael Bilerman

initiatives X on to on is AI quickly the then really requests And Slide Sydney this responding people's

Sean Breslin

that you've kind program what you Yes, of desire.

it isn't as instant of good instant typically long can people as feeling want in you be terms be can or it So get.

within about that it's Michael. typically So a minute

Michael Bilerman

Since you say would to effectively quarterly on business to the you're decision. long-term price second, a third in people Last first, this Earlier stop because and guidance your quarterly terms one I relative performance is, been stock year index. in the the have to that more the the results. in now the the of the quarter volatile made long-term focus reactions in then,

separate reconsider understand, versus and to us information are help short-term mean Now, results to I on you you a from long-term. the the play. hard I guess factors things going the it's how less But know themselves created trial other this may do think there's one-year volatility it at with I be out because basis a that about quarterly

Tim Naughton

more side forward. wider Tim us. But point, I little maybe more at Michael. we the may little leaders term. that's saying projections expectation talk talk hear among a that you're business the to is really our trying be bit not on the practice around plan. a focus is bit more do how again, to we and Board It's people's a really is we in It's And our at we as longer ourselves because just about the of Yes, how for projections we're sell what just, company manage change different this we here. and annual think our beta intent going continue a there volatility a bigger

Matt Birenbaum

Apart I Just comment not one can information. tell I Michael, providing but you this numbers anymore, still We're to the mean, thing, FFO from add understand. in call. we from that about you as this your providing quarterly to provide

is every Just to internally detailed communicating business ourselves what here detail six we Board. very do the We akin which on go our through information business months. reforecast we a and robust to management level and of a

we lot do drive we is not that of their there the on is do give for basis quarterly earnings transparency providing to they due information enough to we information What still than if we're provide So investors number a doing more to an do. think specific try investors. just estimates, but own awful

Michael Bilerman

that Yes, concur no, and I with comment. would

I lot and the hour on that think that since the been on volatile the right earnings the already to has making a achieving about spend. long just you last has a reacted an in you've numbers. think call unfortunately time differentiates at this more changed all. your term. a two transparency to very just negative quarterly output, much we're policy, Your the I was that mean company more and with relative is half over I much note whether change the the quarterly quarters the That's stock you're appreciated, Index

Tim Naughton

Fair enough. Michael. Thank you,

Michael Bilerman

you. thank Okay,


are And other no there questions.

additional to to Naughton I it closing for any So Tim would remarks. back or turn like

Tim Naughton

Well, thanks everybody.

an hour a mentioned, just and we're call. half Michael this As into about

So to two NAREIT seeing we'll three forward you many here give at and or you about a quick goodbye look of in just weeks' time. we'll


That you everyone I'd may for very much. And Thank conference disconnect. thank your our today. for does now like to participation. conclude you