AVB Avalonbay Communities

Jason Reilley Vice President, Investor Relations
Tim Naughton Chairman and Chief Executive Officer
Ben Schall President
Kevin O'Shea Chief Financial Officer
Matt Birenbaum Chief Investment Officer
Sean Breslin Chief Operating Officer
Nick Joseph Citi
Michael Bilerman Citi
Rich Hill Morgan Stanley
Rich Hightower Evercore
Nick Yulico Scotiabank
Brad Heffern RBC
John Pawlowski Green Street
Rich Anderson SMBC
Austin Wurschmidt KeyBanc
Alexander Goldfarb Piper Sandler
Alex Kalmus Zelman & Associates
Call transcript
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Good day everyone, and welcome to the AvalonBay Communities Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only.

Following the remarks by the company, we will conduct a question-and-answer session. [Operator Instructions] Your host for today's conference call is Mr. Jason Reilley, Vice President of Investor Relations. Mr. begin. may you Reilley,

Jason Reilley

and Call. AvalonBay April, XXXX Second Earnings Conference welcome you, Communities to Quarter Thank

XX-Q begin, XX-K note variety press yesterday we actual discussion this in uncertainties Before of please as with release results discussion. and made may associated SEC. company's filed and There the There as during may be these differ with well are is statements, risks the afternoon's a forward-looking of Form materially. and that risks Form and forward-looking a statements in uncertainties

usual, press definitions on available may The financial other As this an discussion. release attachment also which and measures our does with website terms, be include today's is non-GAAP used to operating information of at in Communities of reconciliations, with this review for of attachment to we and call And performance. CEO remarks. refer results financial I'll Naughton, Tim? the our turn that, the AvalonBay his Tim over during you encourage and and Chairman to and

Tim Naughton

Yes. welcome to Birenbaum, call. Schall, are QX Thanks, Jason today Kevin Matt Breslin. Sean and and With Ben O'Shea, me our

construction performance on today, on elaborate and our Texas. year-over-year located then prepared and past in deliver enter of positioned a a development Matt markets the capital of first an since I'll portfolio, will quarter Maryland, we've current trends completed how second results Sean and including seen look this in full overview summary is growth map Carolina portfolio, Ben as where some and is comments by actions, community high-level will first comments well of earnings the a in robust And we for then providing year. comments provide performance the detailed performance a of on summary our will quarter Rockville, in results, provide we road a of Kanso to forward. will AVB on will and apartment including year. overview operating our where basis. lease-up our in the sequential operating For environment review and Kevin our and shaping Ben how recovery and recent some an decision the to marketing including conditions start North NAV outlook QX our lastly, provide quarter. fundamentals new

to trough, move-in at the stand turning how recovery perspective and it's asking I'd last I year we the what in last experienced the seeing rents and even pre-pandemic. deck, in up operations grew recovered been level, first Before back market in quarters actions And has X% year, peak. the modest two the elevated fully terms thought year our pre-pandemic on of closer to Effective have the above and conditions markets XX% almost from faster, allocation. the the Concessions significantly XX% which provide dramatic. Since the up of shaping capital we're fallen the to since were over some over alone. a of have beginning rents now what apartment

very strong guess of demand. might has rental steepness you speed driven by As recovery the the and been

QX to In and traffic XX% of was inventory despite last outpace levels traffic rental It low July. low fact, propelled year. year combination strong availability. continued QX continues rates very The from that of up over through has through last and

near or variability improving the portfolio. bit a submarkets are regions across all and are fair pre-pandemic still levels, and of there's most While back to

Florida average. markets of is Specifically and Southeast our urban, suburban and A Southern while continues B the lag Class to Class portfolio regionally average, to outperforming Denver Area the expansion and continues the outperform California Bay outperforming

as supporting healthy capital over markets the are capital cap and debt asset strong apartment are all open rates strong markets and markets to across below most and values, submarkets are we for extremely wide X% addition healthy for increased we planned equity transaction and few offense fall strong seen also sentiment, constructive acquisitions. market shifted investment. to the we've growth the flows and development and the almost In remain markets, starts in backdrop, billion, apartment have capital activity The on over our quarters. to With and year investment the Based $X have between last expect by this foreseeable operating new future.

markets our In Carolina, addition in in as our and Charlotte well to [Technical Raleigh markets as enter and North release, Difficulty] intent we in announced Texas. Austin the

about have are more a next you discussed we over with two growth in and quarterly outlook that our we that to the the We'll last legacy into in as guidance. plans to addition providing year markets last these quarter, And now share see economy couple markets lastly, completing migration in evaluating domestic growth markets comprehensive re-forecast, over expansion three to knowledge of in mentioned migration, quarters. the years, particularly midyear to full we've from after our some the markets. disproportionately believe As from those we we benefit been will figure existing

of including our risk eventual local the remains exact perspective the outlook with of to rent any rest state it governments receipt phaseout markets let now variant, of payments our While for and our in the to year. eviction performance Delta to discuss believe from have impact over QX that, of a relief and virus we will of the and timing enough respect we provide who clarity the the With moratoria across results. turn operating Ben, me the meaningful

Ben Schall

basis recovery of increased QX Tim at on FFO our since while our Slide GAAP a four reflecting of for share, XX turning business seen and of March the in the the point for reflecting XXX disruption the were increase a per down And to XXXX figures the and for and our a exceeded highlights results Thank a guidance QX you, basis revenue XX.X% QX. and Tim. midpoint year-over-year first positive versus quarter FFO activity. year-to-date, Notably months. over points we've meaningfully last that XX with core on the basis emphasized, cash sequential rental core strong basis from on with basis $X.XX that we time QX XX.X% our $X.XX guidance

in more Sean detail, each the growth will quarter delve of with As rates improved continued month during in rental July. into

also meaningful create developments development close the quarter completed we're $X experiencing through communities. primarily to suburban million in shareholder are are of our continues from development and increasing We the value. to Our across These and billion suburban $XXX of benefiting demand platform half XXXX. rents and the renter first

sub-X% discuss quarter, market with seeing projected completions others providing that in along the our second projects incremental rates cap yield the is points growth the a These in XXX For completed also basis as are more to provide the stabilized roughly Matt to in of in stabilized we're spread sale today. lease-up will boost asset detail. meaningful X.X% initial earnings

increased We in of initial developments in we $XXX XXXX, of which are of new started target target quarter $XXX million QX starts. from on $X.X and billion meet our starts also of track new to of last our new million

lower $XXX NAV quarter turn the capital the X.X%. associated an our at capital we in the with During dispositions largest these and accretion Slide as we and rental XX of on reduce the cost the of primarily lease years. over proceeds, coming able the change of being average down amortization execute breaks pipeline months of through risk we decline. earnings basis By last on of rates raised disposition five a with revenue are cost concessions million to components of our development funding development with the over capital activity, drivers the match our year-over-year the

our total had the to concessions, of at it still a pool same-store coming concessions granted previously we amortized the end As in quarters. of be QX, over million of relates $XX to

by a However, lease factors in Slide rental leading XX eviction by level, roughly to elevated to that versus revenue concession provides uncollectible usage improvement the to lease QX occupancy higher points the being and XX QX since the positive with a bad has $X,XXX with QX bad basis to continue remains move-in are turn XXXX our uncollectible debt moratoria increase declined per above just from an revenue in six elevated to XX% roughly us. X% see to $XXX debt portfolio with until we'll levels more July. from in normalized At behind at expectation a revenue. driven

Sean effective at X% stands our seven the momentum performance, over in of With operating illustrates strong Sean. and slide turning July. rent for on change, like-term which turn to I'll now further June to context Before in turned form our it that, in positive it

Sean Breslin

I April submarkets. Overall, spoke Thanks All different trends a about share in Ben. meaningful beginning including seen thought and roughly of peak rent our average move-in the portfolio On rent call. a rent mid-XXXX. you acceleration increase we've right. during has we positive both and now since on in our few and XX% we slides just can since achieved QX that with eight, XX% consistent overall grown rent trends markets year levels the I'd the across a the slide see is by value

Moving to average every nine, experiencing increase the broad-based rent performance slide been in region improved move-in has seven material a past months. with over

timeline want the in some Northern likely based adopted call specifically, innovation to tech region have leading people impact a roughly equal July The except Silicon remain in on one of If Northern for world's move-in major employers centers employers recovery policies will peak at XX% have rents our major very be hybrid work now certainly full to where peak. greater or look by The work. will tech come. are will workers part XXXX you to years Valley in back California live. will below than remains California, to every on when which for the

address the suburban about while returned still XXXX. the move-in peak urban the our rent our rent average XXXX in Turning we trends, and a these In achieved fell in roughly submarkets the average to performance is most XXXX was down and above urban X% rents. to XX has throughout suburban demand slide in for from X.X% portfolio portfolio way, peak meaningful July

portfolio, people of the and to environment continue relates look office, performance to urban urban As and as are learning, on-campus pre-pandemic we improve resume starts expect back it called like the more universities to quality the to feel to the conditions.

XX. slide to Turning

is asking rent average since peak. inventory and the of representative year of about the X% above XX% mid-XXXX available the which beginning for is published has increased the rent Our currently

expected peak to submarkets slide represent moving the move-in asking back fully as leading to as and previously the trajectory XX, which depicts more The portfolio months. few to average our rent chart is between of reopen the Our continue spread XXXX this revenue environments two-thirds are suburban about next and mentioned urban basically over and grow recovery. the asking submarkets in And I our to is those rents. average

is has in average increase portfolio the which but The mentioned few increased I up trails July to over roughly X% representative the XX% and slides the than of two average asking a between of month the As rents is XX%. for average of move-in movement to ago, dollar quarters. wider this spread the capacity rent the year, rent is XX% seen averaged next historically which the couple we available have X% grow

Additionally, of year there's With development that to have in we last summary, rents Matt? a year few not soften I'll grow rents. portfolio experienced something yet if this Matt for bit the of see and asking rents it move-in a and activity. adjustment the to trading seasonal months address to we plenty room asking still turn

Matt Birenbaum

right. Sean. Thanks, Great. All

which delivering customers rents X.X% to and you that was first We're to investments highlight discount a quarter centers from and which to to provide with just with on those which prospects primarily live leverages really shown a call promise and there's apartment removing the Twinbrook ongoing do experience across very design current latest We're our transit-served deliver development demonstrate all returns that station which value location, costs initial sacrifice. Metro in capabilities. common was construction excited the or a located concept a via rates to is that this this above of we're look-forward is embraced relative of to new the amenities can are seven pro Class stabilized long rent by these development and for Maryland. in area the in the market staffing provide forma extra is One us cap initial our and low residents the able or the additional and modestly communities CapEx above our below with turn track lounges, in portfolio brand the a on supported our strong are at a new X% construction. of that on below focusing positive limited residents we the our $XXX self-service leasing us a on on which footprint. underwriting the on-site development yield see apartment the communities, needs development to Rockville, not that technology rents lease-up are on XX is trends which yields to of risk-adjusted at Avalon substantial portfolio. turnaround to rents record quarters Kanso the whistles the future. lifting bells brand and customer out Kanso operating our insight and both at born a location. a to infill telling and in our in lease-up and Turning up but This in and few our same maintenance A to opportunity for slide simply underwriting meaningful itself By currently the pools, current provided to generating are at investment creation pace without fitness achieving in value home programmed typical fully Twinbrook had allow on stabilized ago capital segment seeing offering has at research, continues we that a new Kanso compared wanted XX growing underserved without large save center completion outsized slide upfront as on centralized looking Kanso high-quality successfully brand same remarkable like

rate coming the age years, X.X%. turn capital legacy further projected and see we at The sales And allowing year. quarter while the weighted predominantly more market of new completed a average Turning match sold of quarter over in new to six million York proceeds dispositions margins. to Northeast of slide reduce wholly-owned minimizing average our goals for area than the also out to XX at average in Greater cap of were markets than earnings we're accretive tremendous in region with CapEx by this yield some over Kevin of into the continue guidance the exposure assets our and funding demand continue for our to profile. it development of to And XX% asset older to I'll at starts New allocation with our us the were XX that X.X% this highly an portfolio to portfolio go growth of to redeploying $XXX our with second

Kevin O'Shea

full operating provide XX outlook Great. third quarter we XXXX. Thanks, Matt. On slide year our for the financial for and and

per we quarter On NOI midpoint reduction second portfolio For basis the as share sequential $X.XX. for residential basis using ranges our result offset of per and third disposition FFO the by driven we of for recent of decrease sequential revenue X% increase $X.XX same-store per core in $X.XX third activity. $X.XX sequential a of seasonally share quarter midpoint a in a revenue operating by core of guidance our increase and operating decline expect in residential same-store our share a a NOI an On year-over-year per This share ranges, lease-up expect quarter decrease the rental share driven per decrease increase a to our and driven expenses is in same-store XX using reflects increase a of quarter. the X.X% same-store same-store by residential in $X.XX in third FFO in per core basis estimate an the of from point $X.XX by residential expenses. primarily a share in per FFO NOI community share

increase share guidance implies full in in from increase in expected our by fourth X.X% FFO sequential lease-up quarter is a estimate. further which the a or earnings primarily third our increase revenue in rental This the represent per NOI $X.XX, by by $X.XX sequential quarter of year fourth same-store the residential and would continued core For a seasonally residential expected driven expenses decline portfolio. quarter same-store in operating growth earnings

driven $X.XX FFO full on increase mid-point And portfolio, year X.X% share in a to our looking again using at our ranges For a per residential expenses. year-over-year expect revenues expect and by our X.X% core we in decrease same-store XXXX, NOI a at XXXX full for operating of midpoint of by growth and the guidance, X.X% we for year the basis, decrease range.

plan, to strong our Turning acquisition of and capital combination updated access on and capital slide in and the to to in XX. as capital earnings current development plan a and investment us offense revenue investment reflected has increased the and pursue our attractive prompted recovery activity growth markets and to pivot

from of and communities to million plan million For midpoint for be outlook. now development year expect increase at NOI $XX undergoing starting the this original development, an our $X up we million, this billion in projects anticipate about new from $XXX $X.X new original we our lease-up year, of

is uses in billion For of capital development, busier an anticipate and repayments outlook year year we redevelopment, by later XXXX. in debt unsecured that this our $X XXXX. mature early and $XXX a increase an original to repayment acquisitions debt activity million represents the from total and of capital scheduled activity, for year expected with now billion acquisition nearly increased driven September of in for $X.X is This

unsecured subject through uses. we plan our tap capital ultimately the our of combination capital or issuance sales, debt sourcing, market of conditions changes in terms meeting to actual additional In are and based capital change sources current needs our asset although, contemplates a capital on

are to continuing our our area now Corporate our commitment of report reflecting released or business. we long-standing pleased efforts slide to responsibility to recently ESG the we of XX Turning part corporate Annual our XXth this or in and Report that ESG, Responsibility

due solar to efforts proud primarily We're and communities in targets serve business. in the also which during efficiency. in we do our our emission our commitments These the our the on-site see to on funding to in measurable pandemic. improve highlighted to report, generation non-profit partners building of to need those we reduction science-based As progress investments

American their We rating in Real and to engage and preparedness provide focused GRESB with in and our diversity globally with band us the CDP the Estate one these on them and number support the multi-family continued we mission. A Benchmark response the Sustainability All continue and our with Red disaster and the initiated the on important efforts National rating national efforts partnership recognized Cross States. in new both Urban League or United partnership Global us inclusion to sector designed with a the externally to be

metric. us Further, And our reputation. number our customers to of reflected awarded their associates honor And Ben engaged in engagement it this sustainability are NAREIT finally, highly and weighed are scores be that remain with turn our quartile highest pleased his the performance. one in we addition, on important that, as concluding I'll customer in remarks. online In top to back for in

Ben Schall

Thanks Kevin.

our and well to to continued rest we're on very are the a key growth, return have improvement our trends suburban Turning in Near-term strong, communities, the fuller of for universities. fundamentals as in reflected incorporated that been continue our believe lagging takeaways very look we benefit which to by slide into portfolio guidance. additional half urban our encouraged portfolio second hopeful coming our over growth and the our the in with and operating offices portfolio the XX, months is positioned should assumptions

environments. and at benefit as higher also will economic the Tim that outperform, residents recovery As living from communities and out to start, mentioned high-quality prospects Class expect the continue income A we our seek

continue the strong our at demand to quickly to stabilized and primarily a in we've pipeline differentiator up in from been activity scale renter development able us, our attractive development for projects and are be benefiting our discussed, rates. cap relative to As suburbs acumen yields lease-up

will the and shift look growing our to breadth capital to of customer we the our markets As to meet expect we our expertise us needs evolve offering development of product targeted allow forward, segments.

operating our platform investments and see a also in as innovation our We differentiator.

the our to In de best of be as offerings a approach discussed addition expertise able the and to innovation, last evolve create live. create brand reductions such as quarter, offerings margin together us novo our and our we to Kanso and bringing to we expense positions the way operating, better technology-forward development opportunities

in we Austin grow to to continued actively existing six Florida forward, of growth our growth We're communities total multi-pronged to asset to other these the similar growth own naturally development addition sharing upon new investors our markets also expansion As bringing in we we're our about with to We the most and us being Southeast head our us and for Charlotte, time over new excited invest and through a Denver expect and Dallas grow to of of over our Florida objectives Denver. in presence strategies on stabilization we've capital markets. in through our Raleigh-Durham, Southeast negotiating forward markets own and where the and horizons developers successfully these approach the coming. own This different opportunities acquisitions and goals acquisitions, allows development funding to being duration. allocation immediate in portfolio term medium in utilized the long-term look with expansion

issued you ESG, ESG to position and entire [XX:XX]. our Finally, continued where Report And Annual XXth that we'll leadership questions. for for commitment thank with [Indiscernible] REIT the across wider it recently leadership our the up sector. organization open highlighted their AvalonBay Responsibility on


of [Operator Instructions] Nick hear We'll from Citi. Joseph

Nick Joseph

be either on of you or once you NOI? How scale, so Thanks. the a markets. get to comments expect as I each from market large appreciate unit total do perspective to new the percentage a

Ben Schall

this target specific Ben. is that out one. putting not I'll at Hey, We're point. this Nick, take a

quarters and As how that also I with mentioned, over it's part discuss coming do investors meaningful this overall ties as portfolio one. a we announcement approach. the what But we'll our allocation see into of

opening been growing currently as our similar new our and for We and just a development we've user specific target Carolina side a some the overall been in the for X% of Denver side. coming leveraging and allocation. context, skills North operations Southeast both and up we're over opportunities engaged across these potential with new years. each allocation. of in investments and excited for Florida set Texas growth for development acquisition opportunities the on -- four are where a these We've our the for rough goal the we've on And markets have actively type market Overall,

Michael Bilerman

been Hey, if sounds is much speaking. pretty contract stage? Ben, in in under can I provide just you maybe you've sort It how -- active it's sourcing markets advanced or like billion of circled you've into or $X whether sense be way in of like sort work a these that you've terms development, able opportunities give almost been already it's us of markets? know these they how Michael just is acquisitions to of don't to Bilerman your quickly just

Matt Birenbaum

Matt. one Hey, to things can I bit. they I until Michael, it's speak fluid that are a mean little close.

specific, the to do mentioned. we Ben So what -- it's yet markets we're that point. in third more close don't some three million in as together add But not continuing those want deals active $XXX well. at we have I do get yes $X too deals saying look half here that quarter. to of to to billion maybe Those four certainly, you're of but for up activity we of -- probably we're maybe three this working have And expect

Michael Bilerman

opportunities in from those of finally, those in as And couple existing job growth markets. know just then markets in growth the of markets just a talked about well have as terms you legacy your people I coming

the or accretive And do this growth going or a non-dilutive of or we of raise to sort forward? forms initial other benefit should a going can from think you the sell equity do forward? these? think Or exercise on so you dilutive funding how of Is you assets financing that go sort be this about you'll as basis maybe even you of

Kevin O'Shea

this Michael, Kevin. Hey, is

into what I little -- some measured Matt bit that some I in make Difficulty] to alluded of it's [Technical terms these But rollout a little then be like to be to of we'd our maybe think a of to capital progress more bit relatedly in number Obviously new we how also on less. markets, similar impact likely terms in of measured. in you've the to as probably front. be our the one and terms pacing it's markets to think likely other seen

that And engage tool start of and out And to against with paces others that because eventually extent we venture darn in own. we on pretty deployment toolkit so also development the we've capital. to are got our that to capital maps or markets our it -- that some active accretive in a to have partners either the in so we development those obviously cost investments are our unlike as in generally way doing new

selling can cap we to maybe better cap similar markets asset accretive we'll our do non-core not so we've in rates, done Southeast assets of them think you that. that to assets way. gains is I in four sub as far, the be then now rates what been And growth So dilutive actually we're non-core or and Florida Denver intention into in hopefully into kind from capacity the something that's with know a legacy from into and any pretty acquisitions do you our likely that think see in continue marginally From because putting markets would we've we're selling into by standpoint heavily as leaning profile. so but of and submarkets And our footprint moving.

think And future. is we So of probably basis. a what of a probably us in so on view we're from the the in indication past good do you've what do willing funding accretive I point to seen do might

Michael Bilerman

Thanks it. for Got that color.


hear from Morgan Rich we'll Stanley. next Hill of And

Rich Hill

apartment be thought you've so, might what there's make what to move portfolio if would put a like maybe anyone wanted REIT acquisition just these any you maybe -- any bigger not a it? a public if REIT? to and markets. basis on it make obviously to that. off asked. opportunity Hey, and about to both not do owner private trying into of might about a markets And even I'm afternoon. these a seems sense -- guys. -- our in what apartment for looking Is really do build if or in play. you're But of Curious, I apartment interesting there in some just Good you these synergies basis private sense maybe G&A see Michael might or make

Tim Naughton

main guess mean Rich, Tim. to always XX of possibility. I looking entering to sort mentioned, markets. we're in It's terms looking as pace into these is -- our as the these over to back period structural a the these legacy making this necessarily M&A markets have markets. of We're sort like Yes to step much time. I decisions not is Kevin strategy not years these years. long our way we're certain They last XX, yes fundamentals advantages. over over our going of great have appealing them XX, markets XX, because make been next we having They're see XX markets a

the not through highly to or activity and markets. into these M&A learning driving as these level what need motivate us either of get transaction we're do recognize a So is to is markets also we in disproportionate

obviously two there risk volume level so, a market And either to big markets which a or high have the intelligence in an gain M&A year the of start as or first in do business. is you do you to

as look here strategy mentioned Southeast and a as we much capital and Kevin that well. employed how Denver very -- we Florida deploy So deployed to at in

Rich Hill

just California I about There's demand relatively market? that or sort to a you amount Gen -- coming supply from is And we amount months market we curious or tremendous of elastic you at you this that's facing strikes am a think supply back Northern demand, were tenants were can push our the of than I and And we How were to do versus to past fair. and occupancy really you this that I do and I is maybe -- and think you response. power about a of just housing? back. think Gen to appreciate effect happening the that? I nine to do sort level. sooner earnings constructive a Very base your perspective How in levels. a REITs. are pretty rents mentioned of your over of limited tremendous anticipating concept me think XXXX much apartment wanted all this coming relative But that you back Obvious recovery demand markets profile, the it for think I demand come healthy so. of speak versus of given faster Zs -- Ys and except as from

Sean Breslin

could that I'll this and anybody take first then at Yes. Sean. a Rich is shot in. jump else

been at demand been of the kind we that, where bit term of rents asking run rents The the at for profile a move-in that quite guess healthy clearing in would deck. you side of slide In demand demand and noted. it healthy. coming you downturn, put quite relative of long on different things market the we're us little what is we the lot But even near look on of quite today look could in get out are the values. while terms When that order where plays surprising of a kind say speed out I a function terms been the have how historical In them through. of asking to rents take I both occupancy you all to values It of of of terms by a whether has standards it still the shows move-in at robust look magnitude would of quite how in the recovery everyone. that's variables and of probably as look have you a trajectory the recovery at

have with the there's in and We both seen the bit able and side. just other supply associated least move-in People the healthy overall variant or recovery. of seasonal supply at demand by this rents. for quarter signs demand disruption about potentially whatsoever end we a pretty be have XXXX. And production income asked weakening into week-by-week short we seen two and numbers good growth the and point growth in creates to across asking growth seeing rental bit and be There's little not continue to of on the our markets have this what very supply if amount. job production us those being our effect forward some or coming rate markets XX% at the run year in We'll of the values rents the further plenty move certainly overall comes side, of And housing the and move-in little It with term, and it's that. the support housing starting over rents feel by we and grow for demand asking could a through the a would maintain multifamily the do broader function of as good outlook the delays we're decent pretty rents various and has supply side see then is that particularly to footprint just legacy that We move about question is the don't pulled etcetera, what supply seasonality feel refresh kind at year. percentage But to that In which room happens see But and specifically. as see a signs a of even housing factors spread XXXX. around move-in healthy double-digit down we still decline we longer been etcetera. upon about yet. and on of fourth demand a next of between

medium-term of kind maybe Tim then in longer-term and in the that's jump outlook. or And want yes, terms other the So the to outlook. near-term of kind may of

Tim Naughton

have of broader by maybe that's excess had do have maybe maybe fueling fueled couple decade. shortage now pandemic. housing just some things population you you A the that we I some it Well there's of roommates demand created a and of items is on been the household been addition, and one XX structural may I onetime renters think stimulus a believe downturn And a are building where as have by are with recovery And being lot about to some And is all not being the recovery. is that in And just this participating I as part probably behind really a and There the are people our think is their recovery. feels very the it that upper that are think really experiencing talked thing where demand accelerated at maybe being and then last have over that population that's much think from like de-densifying now I federal our do obviously the and we've V-shaped demand. stimulus not and people We Sean own you steep have our during V-shaped left structural households very parts -- household recovery, to the XX of that are perspective, propelling of may service-oriented to Sean nature technology tag saying. But the just help we want index industries this as obviously that is or maybe federal been they that as too. over stimulating maybe unprecedented unit. other the what sensors that's or maybe the supply kind the mean they're mentioned savings jobs as of not some combination view they was that outlook. Yes. well a as our much K a to Yes, on K-shaped. given of -- of margin. cohort. -- opposed of sort to types get services had that financial two they're tend

household propel of and I help So, within target more think segments. could kind particularly in some formation, nature that structural maybe our

Rich Hill

helpful. I’ll have questions queue. the That’s may jump follow-up back in I Thanks, guys. but offline, some


of we'll Rich Next, Evercore. Hightower hear from

Rich Hightower

were so taking prior go into just this migration decision the view led positive a for directly understand, changed knew view to earnings think understand, the markets so for a to expand to questions on forth some long here. markets of time, what cycle. and the to help lot sort And Thanks expansion maybe these different you But this it's guys. call. us to COVID afternoon, due attributes, want versus in markets to the back these of mentioned on a if in have what might I the that's there? peers terms these four patterns your on of obviously been of of mentioned movement us about maybe markets I which had and of your have help Good some COVID

Tim Naughton

so of Yeah. Sunbelt perspective, expansion it's going really big a what all for confident one there's into or trend seen Obviously, in could benefited changing And was our -- domestic not during XX by our take you to we XX Rich, COVID's ago These some some these from transitory, add And markets some and formed made Obviously, that's those migration. to saw some think years our we've about you've as markets deal these really what COVID at we on the markets, pretty to maybe I of it markets and of in there some terms more three would occurring level probably markets. that in the Denver years. view next migration that and Florida enter have maybe Florida we say over but legacy success from to markets some some maybe seen how saw are as markets these we perform in Those can of many has us some already Denver, other how footprint. my us it markets. they're so of Southeast of only of Southeast time. move of well. and -- at permanent,

as the happened, lot months have So, ways. over these our in we we other focus in last to whether the all looking are hadn't now, new where XX some whether we're to Obviously recentered and like felt probably But entered through and might or it's of markets given those. in potential a talked to if we're grow sooner we looking priorities. continue segments, past willing I geography have about a it's broader at right COVID through events we've would use say, the of looking position on at pursue mixed

Rich Hightower

development you I on. And then, costs, comment, broke down and color, I helpfully where really land labor about to soft we guess guess not But Okay. yield as ultimate development. costs, that talking could of across costs and last think so so equation lumber And actually from a the the go I That's should drive you about Tim. what hard explained back to want that's Matt, price labor, on inflation focused earnings sort forth. days if call helpful expense ago, XX the be people

next the And over us And to that to context what seeing XX XX now? in you expect movements so, say, be, that let's are costs help where understand you do labor right months? in

Matt Birenbaum

seeing where activity are we our would and hard their while cost bids workers. priced we lumber in a quarter is -- it's dry sight steel It's of And lot other things see come it commodities up. hard thought have the the line this is development we are would see getting of lot We that to And good I the But seeing direct what X% driven right last that to we're market in right ready last and up the a of you're into that in the subcontractors a We're inflation probably is, is what XX% come starts quarter, we ridiculous buying is have end general paying top talked getting bit. Rich. up, the this about now. as those pressure. costs wells the it little the labor are of say down, was has definitely what secondarily start are But quarter capital we're kind release we're our -- of buy from a we Sure of started costs. the out for of year. Yes. some by of certainly us. to we total the at there by air deals quarters, couple And primarily don't really up, certainly that lumber

a So that has bit. in pushed and our down yields turn --

a closer the think to that expect last year, ago we this a was about And is year $X.X X.X%. development year our start late I to billion X%. yield that on or maybe

seen So down as before again, yields. we cap some in are have obviously, we much downward And rates talked about that pressure more.

assets seeing new broken being in of trading. the records we're anything are side just and margins are where as strong the every terms if month are So that transaction on

rental to increase its continue and would on is And starting them say, us pretty about. confidence still we're our But that's – into is I that's were the some. building transaction to starting So underwriting are that's basis to us the still back in to and on that work NOIs our that X% see XX% taking to our talking rent development others conservative. lift giving giving market it which and because way we underwriting

bit there's still of there numerator little a lift to So probably as come well.

Rich Hightower

you. Thank Great.


Scotiabank. of Yulico Nick

Nick Yulico

terms incremental on is forward. guess pipeline. great? know to just wondering perspective going towards and development I A of is even starts that be that would development. there question of weighed thinking much thinking about how I that was you're I be everyone. announced How a little going in suburban lot development current about Hi, a projects? you the the

Matt Birenbaum

Sure. looking now. This is Matt. I'm just the at list

a urban. It's we deal and quarter Miami, in frame only that Park relatively the this planned one, the One a looks deal kind is starts urban. small are we started and like and Merrick wood them got are in two, just year three, Brighton. XX of two but urban Those So – of Miami. one residential Downtown in which the urban two them development of this neighborhood is Gables of is Boston really in are Coral not

to going now So out to from certainly the we two urban be XX% the better. might as But suburban. well it's submarkets. at at next start as and we're more are in look and years could supply over the vast or that economics next to four, of finding that That's change equation coming And three, mindful to where of future. XX%, when we're be the there's majority look still same. that it's are suburban. Again, what the two, market working in maybe still look more land predominantly the likely year, suburban year you starts where we're relative the submarkets And development I continue

Nick Yulico

development York as they're know versus other York one list suburban bulk for example we New the let's York, I metro – terms supplemental you say And of you shockingly don't Jersey rights $X rents that and you is rights could in page maybe for year is for those for New cost Metro City go us urban. almost you over right And at last back development – then the rights just to same. if look New New development the for my And other that question region was the Metro but capital in billion your – average a in feel where your give because and anymore, question the suburban the it's of for Okay. terms are. just feel is Great. now just of for you – listed – it and give that as

just of City should in there's now concession And New rents almost a your there point or think the gone portfolio? to we rents about wondering, suburban so impact York have I'm if really or something

Matt Birenbaum

may the part part I Yeah. I to can want Sean bit. first speak second speak and little to a mean, to the

billion we're Metro rights. mentioned, development – of looks today, as XX% have about It is about that we So I New in like $X.X York.

And of have million a to or has down so when million it New maybe more of York. schedule of bit of in in we've quite So compared two-thirds to used it come $XXX And Metro it is been regions. that adding is in we least other $XXX that the at suburbs. the

the Jersey, I Inland New Long Island in – development type think of everything locations. we urban have Jersey, a else one coast on of is is lot right but that

square kind In over of terms of a know the the the I X,XXX size probably is average don't it's feet. unit. suburbs in I very mean, existing our different rents number, but unit in – the portfolio

frankly a success. seeing whole that's different. the look of rents lot but So the dollar same pretty the per And where rents may foot look we're

nester-targeted or product townhomes Long So New empty we're rental for more on trying to Jersey example in Island. add

the target So quite different. are the sizes and customers unit

Sean Breslin

years of for we in plus direction. development as billion. our $X.X $X.X markets in And starts achievable the up to starts next year development Nick couple billion over in of additional for just couple heavier look our expansion moving type billion to that next We as in our pipeline we took opportunity the is think this that we $X.X years, the out get overall terms of of context range additional over over

Nick Yulico

helpful. Appreciate it. Very Thanks.


Brad Heffern of RBC.

Brad Heffern

Yeah. Hey, everyone.

expansion markets, that path Florida, sort X% is can that Because you Southeast you talk obviously out? towards number Denver about getting X.X%, of the maybe to X%. the On I called think

what's largely is So XX-year scale? of a like time this at that point? development process Or that's the sort

Matt Birenbaum

Brad, it's Matt.

Southeast and Florida yeah, at looking you're same-store probably think I as our think you're about talking Denver, I portfolio. So

get or X% current we're halfway of by by by say, total little We're investment to where trying kind to roughly I'd our those time. period or of actually units weighting there. a not. revenue but is some over higher maybe X.X% numbers, is than X%, So it's we're

it's can So the of that. with more I clearly of move all quickly we mean, a acquisitions. combination needle

– instances looking in And do And actually we are trading. those cases to so in many did Florida in we we're as we will Denver that. and

So Development we're capital taking longer. dispositions legacy from markets our and that redeploying there. takes

acquisitions. So, we're going those developers. above. on timeframe be funding different the bit kind – bit us going Each ultimately, other of of which to to timing and be It's the terms development. give a a of of It's relative of activities it's in little be diversification going going be a little of to It's three is to all does the trade.

years. make And ground. on certainly we that. expecting But We're we the that. in expect be probably are kind But these pace. yeah, people It's as commitments any So more three our longer get certainly, regions. of reasonable -- up than going wouldn't or of at of like looking able staffing to I portfolio I we to those to take or mean, a either at two to them within to X% move putting we're

Brad Heffern


funds? lease then, that it. but there talk And can benefit mentioned on prepared comments in had X% been maybe relief know of X.X% you I revenue. you federal at the then, was consistent of the bad that, debt Kevin, sequential got Okay, sort for uncollectible through kind

in funds? of receipts So guide kind what's relief on And was that for just any on outlook that. the

Kevin O'Shea

the so. we have of of second relief about was far, in quarter. it's so jump has happened including in here only relief a rent million Overall, somewhat may half Brad. year give approximately and rent far $X.X in bit, first you and want million little in what relief programs Kevin the to which to what received but The Sean Sure relief Yes, in to the been of programs. helpful numbers. But talk or million so just current payments $X so -- in a is payments $X the sense marginally our

back in quarter. will million. of $X that we that the half year, we'll we've And million. back $X.X million be receive in most of -- the which what third July For we've kind the is in assumed of received $X includes around the And that half of received

what much inherently residents it So for Obviously, involved where obviously it's own time. for a we're we're our is uncertain looking lot there's which that's visibility applying but can been an how our process in awful working to receive and going and that not we we've about when. at And it. with more of takes on and

So will we've assume in we going been relatively modest from opportunity. what we that receive forward

Brad Heffern

Okay. Thank you.


Street John of Green Pawlowski

John Pawlowski


few Just quick how a moving a for development proportion? me, will be as the on Kanso forward, questions big the product curious pipeline line,

Matt Birenbaum

a I wish of it potential. it's that of We how it, going in think We underwrite to our have helps Kanso. a Frankly, performed lot seeing Certainly, we I pipeline right us John. now. knew opportunities Kanso like understand got how don't forward. lot

deals. be they to will So probably tend -- smaller and

up Avalon work to or it unit So the over opens it's that and when amenities the things the apartments. XXX we hard relatively and sites of about it staffing you think one that make XXX amortizing of where, on cost numbers unit is some about like a actually few pretty the smaller

they're of next I pipeline be So, to new be a Kanso at that pipeline. of going would into percentage hopefully, year relatively it But the opportunities it or smaller, least because get the to the likely number small expect two. would -- in a may we're

John Pawlowski

normalized full And are my income XXXX? kind today, fee Sean, understand help we disclosure dollar most could it, where answers the But of total we absolute run me get then, questions. the And call on back rate? can income given Okay. when operations you And of year divot? to then, kind of a the fee side

Sean Breslin

back change fair Yeah. I can want then, we recall details of And with we're some few as recurring to I time, this at some across through most to John. because monthly, give exceptions detail fee of income, to you of We can't of in New we charge its But you from for still result changes anything, a with part, system. fees the in like, percentage way state for State. upfront associated a with much York -- some the amount say, there's may most the in qualitative follow-up had that's Good a question, point off-line footprint answers. working some a that. of high would to pretty Washington

that But sort a simple to a the basis back can would what I not little roadmap with part we kind we're say you I it's detail expected a little for off-line So bit to answer. on of it. of come. stabilized most But follow-up yet a more help to with

John Pawlowski

Okay, right. all Thanks.

Sean Breslin



Rich Anderson of SMBC

Rich Anderson

afternoon. Good Thanks.

regard new enthusiastic Sunbelt entering? legacy -- But pie think are level comments maybe to geographic winner influenced when with are Do to similar that markets really I am the of I they're know you're the reversion kind chart to three, It's kind made made. the COVID a is years you gateway right four, that your now. kind some the five some markets maybe in hasn't different So it's changing, curious and But of decisions mean. to how as about them, that you you've you think a about of you see equally long-term, have of you of these out? when all upside but they easy

Tim Naughton

Tim Rich. might and others join. Hey, to want

I think, -- have some always exited right? we markets, -- and we the should those it we're be simple But answer wasn't, exiting is, if yes. We've and markets.

what to be We're we're turn or a upside trying see whether little we affect not our as are potentially opportunity, five the next and more that out in of market. of where some bit there, risk others. years both are exit to years, or immigration business than something less be we the not not terms of and -- exposure next related going regulatory drivers and markets four a to demand it’s that risks look not it we're supply certain that as going or to reduce certain our the honest more some not prepared or intellectually we at or but the markets think be of -- either we but today, So may XX XX it to might there do in exposure

talking are they and some economy the time, to and mean about same -- be are massive -- supply particularly generators So know, they at less I we're but markets we the exposed supply. the to. certainly of are in constrained, of as the businesses job parts we want

more in markets So diversification liking than I would we're current is not say about our and seeing about it what this is growth, today.

Rich Anderson

about in -- of peel Do And the Good. you that away? X% going the mentioned And are then, debt. to bad off headwinds, assumptions happen of, various going kind Okay. question, line? in time issues, and affecting those, are the local of What second you moratorium the state is the -- you sort you think of, terms can kind you you most? what that those have

Sean Breslin

for Rich, a that to Yes, burn, What do XX from it the answer moratoria if that of on But for of that in say that, out XX, but rent prohibited there's anything the to open you're in think the that quarters, stages cetera, sudden, do. jurisdictions beginning cetera, on out. caps, to what's long see or until be as next early the slow eviction all CDC transitional in over to starting are different already other It's that we et of one, of Sean. Biden's it's everywhere. government Washington State, of happened a will a things to And there. want sort to process, kind of days. what California reasons, whether you opposed seeing we're is, through various terms moratoria are I'd this is of that subsequent regions, requests a September. doing the it's call couple Local can obviously and a side June et number game characterizing period phase various based March. extended -- of the ended in various

and is way the And things probably based opposed So the get state two or I to level, well. it process find to right to the way level to not local levels, multi-quarter think, flipping a will on in the quarters, only bad people one are of transition back a across, debt bleed therefore, of but just in to think as came as trying happens at at I the it. switch kind the normal impact there,

Rich Anderson

very Okay, great. Thanks much.


KeyBanc of Capital Markets. Wurschmidt Austin

Austin Wurschmidt

Great. Thanks everyone.

guys future to But and kind hit $X.X large just expansion size like percent respect just as current curious, development as I what's on some years upside new my up know you've the you footprint maybe the markets. moved of willing the grow, EV. the of threshold billion a on had in of sounds So, to starts. latest today, one over you're from the with It how that total of thinking the pipeline questions to

you're that, various the risks and And so, about opportunities? how given thinking

Matt Birenbaum

Hey, Austin, to number it's about there's I a Matt. it. think guess ways of

You of of years can start future size of pipeline, typically three represents terms think the about it the development activity. which in rights

You can think about of of it development underway. in terms the size

at we've XX% the latter, any of development time, -- a well as range total given In a our about to of point terms percentage having the in of of are kind underway past talked we below, target XX% of in value. enterprise

think I X%, right at X% now. or we're

the from if view balance [Indiscernible]. find of So I sheet we point a can think, opportunities,

pretty feeling couple good any about of Ben again, the years we're rate. mentioned, it So, at next as over

think would whatever billion In took rights to underway maybe say million. $X.X of $XX $X the a rights of XX% million pipeline that I be you billion a going underway, would terms to if you you TEV point given -- time. if any development want of so pipeline, TEV or even or billion $XX $X even in and $X at probably have of billion development mid-$XX-billion-ish,

So we're grow it. to looking

Ben Schall

more development, to then our opportunity there's our but obviously, developers. time we're looking -- in then market funding fully think match And spread One, our of from right, couple Matt's our the A at and a We right, that using also other pretty there's are buy our been things development expansion our on method hit use the funding markets we cap we've to activity. a partially to there drive and perspective, add other set are own we go will right. part, with prepared sooner to slightly profits, sites some up attractive comments. and rates and to going who that remarks. we to pursuing on development today ability the I'd own and developers than developing and activation entitled our depends get And we're us are partner have ready and lets to if able were that's look and of where to

Austin Wurschmidt

That's great color. very all

the level versus You that dispos mentioned -- with dispositions. the and the starts Clearly, that use and you you saw that attractive of match quarter this we spread funding occurred. new piece

of you we curious just future where out historically sight wondering, mechanism use is growing and good given to lock a starts an of kind as the that that's the I'm there So when maybe seen uncertainty funding that today to the light something well a and use ATM had on capital as look some cost and overall maybe potentially stock have you attractive is of to pipeline? you'd size of forward in development today the fund

Kevin O'Shea

profile an you sort be to long interesting potentially And sources. but of have Kevin. it's speculative. asked primary question back as we comes markets. to And What's Yes unfortunately begins It a inherently -- I but we return Austin, that? then out this mean Hey, do it's uses. three answer also you What with know the on intend one that's you could point it's it as do?

unsecured We debt. have

right have three the from the of view. a stand lately and reason matter the suburban the there. of differ of things are relatively factor their on more been have get usage But balance now there. Then to we suburban metrics, regard mine is And equity, historical Tim, little and particularly a clearly, attractive a sales. that's things how of now pricing and main and might one And can We sheet asset probably is and right are to one attractive which all all is equity where put My as which those opening in you funding the of factors own might alluded when sell you circumstances unsecured bit then we you attractive. developments. common his common you're debate Today, right alluding rank pricing. accretive what to remarks markets might debt probably -- of debate our asset of third. second now, asset first, have with them based from to where which sales three view I'd own about, you And you point today think about assets into are one standpoint is gather sources sales,

news our obviously, to Second our -- to with is capacity-absorbed quite we're but that it there with capacity help the doing tend us investment the a capacity also distribution. had here development leverage. we factor leverage like expansion we leverage growing before allows to special fund buy And to bit makes somewhat make tap X.X we And is into lean is our capacity sense. activity. markets factor revenue to NOI good and right that to capital gains lately third market as modest that to and if And to increase assets that do have in growth and our a turns, to increase of support now so activity with

So of choices today. the for menu on us a lot

about in very into development part the It legging just of is having of do growth it. know And of we of now and access deploy if to attractive in planning year. strong fund, markets what's don't is kind I markets we think wonderful the the accretive the of how kind front the that anything earnings front of I remarks our half and debt bit to opportunity alluded news are that of terms plan can we're in. capital So for we us to to situation to for, to I'd in of activity. right we through to we it have a of my sale in that's we unsecured us the front enhance capital us little sort tap say in which where need be investment and more decide what accretively and back of is, the a means beyond get what's good a cycle, uses asset but What --

-- and important for So that's an AvalonBay. differentiator

Austin Wurschmidt

sense. thoughtful Kevin. That Appreciate and answer, a the thorough makes of lot


[indiscernible] Bank of America.

Unidentified Analyst

well. for verse move-in in this XXXX Any the Yes. above was suburban kind thought Thanks everyone’s Hope levels? get of I the where thoughts it could was get to? doing into on what's when XX. everyone. urban urban guidance And rest slide looking deck at their communities the your just of just year maybe would those interesting the built communities on I pretty rate. maybe Page

Sean Breslin

factors what's the to sure Yes. that it. question dragging not its would is this Sean. completely point in the but Jeff say expect. time can has a of, environments that It's a relate I urban answer this Good I'm mean question. that knowable at in terms places might you I

reopening the the like below Northern with it Is people everyone? Day? are in to district, within in submarkets in. Labor that a as think employers back a the urban bit will these are around the it it And is that it what places major partial? California. don't in know to, So Tim does university occurs they're there's their in like various And when campuses little the tight. of university submarkets influence, XXXX Is Or of been housing. terms thereafter? What a as help get these urban the sure for call the dorm what terms stages And are packing City, various peak of of that that New work of it urban Is Northern housing? values have happens York moving one that we Day, some happens? have things support look better campuses then is of Labor of of I I all outside like beyond sense case and Virginia the And in those say. referred that function as demand in we some de-densifying of their environments universities in other happens pretty much should should local some would that factors and for if and we really the that every And

levels lagging expect move-in that pretty back boost be want that of in like think -- behind us back about of a would look to does good I Those rents. and number Day. therefore, and factors the you does values. peak where move-in much through to rents when get would terms those asking be of get you'd you What sort of how Labor to think that demand

catch the been right consistent In the to urban growth I across would next terms we is has environments, sort And factored and general months what to now guidance, it have of in we expect lagging suburban the continue we with what's seeing. over continued do few it in describe terms. markets of been lag up but the in have way

Unidentified Analyst

thinking they than of as anything lease-up about strategy, lot revenue as your Okay. weird get you probably helpful. be August once management might we other you as because are more far more kind changing leasing a all is fall? leases to is obviously, there have into just year, into would to normally your periods. July maybe adjust than going And pushing then How at of next the are longer rate systems I maybe about a be? just timing Super period probably in And thinking they and then your guess go of

Sean Breslin

there. A -- question. a of actually couple good Yeah, questions different different couple in of

in eviction to expirations residents So the for to and that -- first on exist lease lease one different don't rent some just increase is that's on actually leases. jurisdictions part of the latter the little based expirations, caps very today around piece the incentive moratoria some on go

It's right normally So it three our is. around that It's higher percentage times now month-to-month around is than X%. about normally X%.

to sure we're move offer through as always that. lease So we're we stays given too make terms breaks leases And not of about the resetting expirations occur in check. lease in new concerned year that expiration profile, we lease as that month-to-month

just all normally time. we something that's do the So

first is of around seasonality. As it relates to more your the which part question,

As I mentioned this any in seasonal that typically softening occur. would my we seen prepared remarks, year really haven't

rise pretty materially year. as see and you back from some downward seasonal rise back you and the to half say then slope through start rents pretty If times, -- you January the go to move of adjustments rents normal mid-July, asking through

might by outlook experienced see don't volume, We have that volume, that in that low possibility. seasonality there we spread see in of we metrics feel things that and we not between that next be be seeing cetera, a not the so. companies for is near-term rents decelerate still QX are variants asking like XX%. impact terms we're the the those of if because a certainly you're if certain or start And good where et about all continue today in move-in days would decelerate. of thinking The risks the move-in lead delta We what rents visit are that's the do the though, positioned asking to even to to year. terms grow rents do nice potential little spread about bit over and on about Even there a and this there's the reopening availability question delays rents, asking XX rents if again

move-in adjustment have continue yet. and to do it, the that factors haven't to we can seasonal we it to we enough grow seen again extent start rents. we that So But impact spread macro some see

Unidentified Analyst

time. Great. Thanks for

Sean Breslin



Sandler. Piper of Goldfarb Alexander

Alexander Goldfarb

back good quickly. it amazing how is development Hey, pretty One, have afternoon. come so the [ph]

wonderful the AVA, now or if Avalon brand, now that's you have just and So eye-popping. Eaves, you really see, have I Kanso, those have apologies you along But mispronounced. to guys lines, Kanso

suburban part range development your Just of cost different an the do brands? economic I still some the as brands? basis, a stuff, older of between four sort And Eaves four return But and understand returns basis the of how what's is the of more the the assess we economic but offering.

Matt Birenbaum

growth some in I it's to bit I can may base. mean little a so than is going has being optimizing really so of But -- asset to on out any more I aging of brand -- an or guess, yield to customer so to Eaves, speak having that tailored Nobody the more yield about acquisition the opportunity It's not Avalon necessarily terms Eaves in able want development in submarket. given into that profitably. over Avalon. way, happened which this It's cases. than it you're brings Alex, [ph] so to others in it necessarily a we're is generate more segments economics right, in speak through higher It's AVA to industry. profitable Matt. terms can't a and But been has in that it able time, being we existing higher one much not build serve more another. about figure that generating

AVA investment it than as decision or might that is it more appropriate, fact draw an be a we've In if to were -- in an community where better cases as a locations versa. some certain vice done Avalon might AVA program and dual in as brand it

in to broader second it's optimize product want and any first going same that by that there all our business, it a Avalon to savings as opportunity have So was locations. and more well able that get and And other XX% lightly things is that offering individual can look and market that really cost can to over-served line programming we're and no doing new that comes we're lightly that more one get AVA. more show as as do more rent yield. below that operating longer which by because Avalon being XX% an is are in don't we savings by a And manner that, choose folks opposed CapEx an great that basically that. that we apartment, Kanso, different for savings we similar we would to analysis even underwrite really an this delivering along location from, it and operating market that or did hard -- into is between -- to to self-service from the having would a customer be at we by the submarkets what of our there term point value don't thinking segment. in -- multiple a want a to but force think And the underserved

one like X%. less there where the done do we've with what and It's we're finding is discount there the both, but -- are is least so could you So far that. locations at more than

how kind have think out excited see So really things But early. about of that's we're still pretty the it. that We'll where post-COVID play settles It's to in. about see I that. to way

Alexander Goldfarb

along thing sort And is the second just then the helpful. Okay. development. That's of

demands the or housing given but just especially also people space suburban, more maybe more type. of wanting living for Just

make not guys single guys of is there you suggesting either elements into new where see more additive, family, whole math or more I'm an more ability that you As of to but work? sites, of the add but for add different -- get the a townhouse plan add sort people living still that's sort hit makes your can apartments longer site within demographic you all

Matt Birenbaum

a two I'd flats the first site that's which east The Avalon more past about And developer. lower-density the is our there just a a piece have X. have XX-acre on Seattle. start the where unit as side is we that started XXX have ultimately And might the town. from you for instead places would deal about Alex. Bothell And Absolutely a Commons high-end Phase east That's decided of very even to ago the phases. lake product community to point a XXX the we're well. we quarter, to in we that rental size we more a of sold infill average would a of as think biggest flats the of with which do Bothell, in couple component That's years dense we we suburban going with And well ourselves the site there's includes of for-sale have site program than the and phase towns. does flats built that as I so in

in square communities might last cycle home. to the as unit opposed So or developing size averaged XXX I that feet is average other might feet about that X,XXX there we per think square be XXX have

seeing portfolio. our that's trend we're in So definitely a

Alexander Goldfarb

you. Thank Okay.


& We'll hear from Zelman [Operator Kalmus Associates. next Alex of Instructions]

Alex Kalmus

it is at for based from and Hi. side. -- point to hypothetically the my many moratoriums of moratoriums Thank debt broad do lifted, more they sort question. of Or if question A And levels a that causing are occupancy on eviction this the bad eviction How then you this were units are is taking expense? sort at time? of mostly non-payers what could are based? little sustained sort if debt the the this secondarily, sustained bad one the unleashed

Matt Birenbaum

Yes, Alex good questions.

that answer for non-payers, the your sustained is on question first part of relates debt. to the the the bad part yes, as most it So

of the moratoria maybe what would back on to On various eviction of earlier out there. I refer question second that's mentioned the kind kind the I

actions there there get based place. Assuming timing is and and et level place, be The in people all of local be nothing how jurisdiction in happens the when ability cetera. to likely jurisdiction out, court different are those federal of lifted from system, may they level, level is will actions there's the it state up to on backed

in As result be a either way choosing time. do some process forced a our relates and but they be leave something. of a those and quarter everything the market, units and of the process, end and out need two potentially And to communities work see few hold things, will the back as people, is bleed through. or of they it to coming so vacant quarters the our be are when between. of people that a light of the will in will own units Yes believe to they turned some people one until early then the to through to or have out tunnel speak, for last therefore, leased minute leaving very take probably to There sort definitely those we their occupied process will sort who at just will not legal really

most believe therefore, a us Angeles. over is through probably its where concentrated for time. the work it's The market system and it do of in many others Los will way So period we

are one its And expect therefore, others And could similar to it based different for that take think will little outcome. fairly may again with on still I quarters happens who to jurisdiction what So work think but in a there two get bumpy way system. choose depending their the we on or eventual specific outcome. it many a that through residents three conversations paths people

Alex Kalmus

new sense. the XX of a match basis you point much you in seeing the the type And levels? are tenants differences occupancy demographic on depending they bump side have Makes market demographic Do with sequentially. maybe income on and base? little the it. there here Got portfolios or a age pretty Or or

Matt Birenbaum

been question. have good the Also terribly Yes. portfolio not at material. I the mean level; a changes

If look the of basically as low you XXs portfolio same. a an consistent the high Average range, not with went kind suburban XXXX. XX at levels from in incomes example, meaningful are pre-pandemic to age is difference. so pretty It

if to about while XXXX. the X% it On it went about XXXX because the mean average at down basically level, you think incomes the still are move-in portfolio back urban below of are up. at urban sense, levels, side actually values X% I movements are makes but X% kind age

remained up So and seen have relatively constant as rent-to-income ratios we've back. come come incomes have rents

markets. up. levels. up some level, by XXXX in bit pre-pandemic little nuances So to portfolio New it relative a more Incomes But all age of the some kind York region. modest of changes well are the lines of kind There suburban are as at and

Alex Kalmus

the it. color. Got very you Thank much for


for question-and-answer that back time today. this comments. the additional over does session And or conclude call I'll At to for Tim, turn the any closing

Tim Naughton

I April. and you, on long you. stay and been today hope all you being and it's of the for enjoy call just your know rest you summer a Thank Thank thank well.


conference. all today's conclude you your does Thank participation. that for And

disconnect. now may You