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AIRC Aimco Properties

Participants
Lisa Cohn Executive Vice President, General Counsel and Secretary
Terry Considine Chairman and Chief Executive Officer
Keith Kimmel Executive Vice President, Property Operations
Wes Powell Executive Vice President, Redevelopment
Paul Beldin Chief Financial Officer
Rich Anderson SMBC
Alexander Kalmus Zelman Associates
Alua Askarbek BofA
Haendel St. Juste Mizuho
John Kim BMO
John Pawlowski Green Street
Austin Wurschmidt KeyBanc
Call transcript
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Operator

Good day and welcome to the Aimco Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lisa Cohn. Please go ahead, ma’am.

Lisa Cohn

Thank you and good day.

the including we and projections call, on are XXXX conference judgment, management’s related this forward-looking make statements based expectations. During to XXXX a be are of filings. statements subject certain and These to which in found uncertainties, can our SEC risks description materially may maybe what differ discussed Actual from results today.

AFFO Aimco’s the part reconciled We most on related to website. discuss today’s of – the as comparable published full financial supplemental are during is business These GAAP measures, remarks release non-GAAP also FFO. will defined we prepared in excuse planned information information to On the provide our earnings that will call, such measures certain prepared and separation. and me are our to our

Terry shareholder expected hold and public for outreach and Given solicitation. to focus comment going questions the our related Prepared next remarks going planned to we the ongoing filings are Executive Considine, our will our Executive of Powell, – Wes not not Chairman respond Kimmel, to on to Financial charge separation Beldin, of the Redevelopment; this I turn not our Property shareholder week, anticipated Terry to Chief call Terry? Operations; and the today call, in our Officer. CEO; Vice of Paul President, Keith President, now charge from Considine. in Vice come and our

Terry Considine

for this Thank Aimco. all you, to Lisa, your interest in call thanks you in of and

We have a lot to talk about.

a great was successes. and quarter unusual many challenges Third filled with

separating headlines: entities. by risk, unlocked reducing three into are does shareholder in Aimco a by leverage and Here operations and reduces two costs leverage, well billion; times; difficult Aimco $X Aimco value,

continued of the story. the effects the of pandemic. rest Here’s The challenges the were

Many strong at quarter third the economy, sectors lows. quarter second GDP but rebound the of remain collapse historic Following uneven.

now universities many from home. workers work stand For many as virtual buildings are and empty office example, now

in of homeless, with continues for the we in public the live rent it to all, worked general challenge homes and we’ve for spiking provide hand rioting, the police, In to of and are operate. several health Keith and the families of violence provide hard treatment we from and experienced now unprecedented Aimco respectful in order. country, team camps need. individuals our uncertain collections. outlook safety successfully setting all and COVID-XX apartments, of and apartment to subject targeting a homes. helping regulation for cases the who the markets good rent his government including many And markets, refuge For public in and virus, across a to those They neighbors, Through which

and Keith took discuss detail, in will economy later As Paul the its toll.

As in residents some recessions, afford could longer rent. previous no their

the occupancy owed in In for their the departures, past dropped quarter bad debt this ordinances Two-thirds other is residents of the have free. months. rent by instances, Aimco six unprecedented, and bad option debt who residents to increased. local rent live With and is lived gave third free

the While it for cautious behind spike is that worst the a second about seems in Aimco. pandemic,

Our improving forward-looking been since have midsummer. metrics steadily

has delinquencies has space new lease dramatically steadily let been rate is For up example, to The is down. available Occupancy bottomed. declining. and of

Some settings is of the impacted properties to important returning portion but normal improvement. and in remain largest urban steady performance our its portfolio

in at Fielding rate of the our and joint passive I’m neighbors their from team September to Aimco’s customer step in portfolio. disciplined joint a also value, The reduce customers in and chance providing life Aimco Notwithstanding of and graded equal his family priced of to customary the adherence bayfront the a forward, as and by few and acquisition who formation investor. The challenge significantly and standards rebalance a service work same maintaining venture Keith’s properties selecting at benefit move pandemic long minority our source $X maintained sold redevelopments turbulence, campus grateful successes XX we an and the will venture billion did Aimco the board portfolio to for changing to X.X% flexible engaged. strong including community The sheet. growth their funds stay Miami future for found interesting by directors stake value new $X.X team and always, JV this good science highly to of dynamic advanced from with Patti Wes of institutional IQHQ, an pre-COVID longer. and work. for As opportunities published a venture XX% we’ll balance cap difficult to was, business as personal developer. focus concerns of California regulations, was taking estimated a important proud world-class billion, a closings school net and cycle high validating of asset customers with and improving markets and Aimco’s was With a the Aimco’s together. of Aimco leverage the excellent be

nontraditional is the total opportunity is risk, reductions for G&A apartment risk, and billion simple, dividends by the The past one, create high-quality simplify and have from asset board already years outperformance. SEC and been assets published separation, flexibility would not competitive related the is plans the next financial to roughly loss the But stabilized with in XX% goal Property transparent and known I’ll to and in capital entity the descriptions be coastal costs much the lowering a reduce redevelopment, to allocations of before then and our substantial bases the make same have to be and or turn Form be Aimco. multifamily low-cost to in diversified individual more be seized reduce Operations. business for portfolio Aimco able allocation. to communities FFO new returns shareholder on to enhance beyond days. venture expected redevelopment these cycle future in hold share The and known and then, board sourced owning to three and discount were filings Aimco vehicle shareholders price $X by a I complicated properties. Until will for better to increase after. capital offering vacancy second of from by replenish separation, stabilized asset to to of entity the the invest to for joint longer only the With to stock reduce redevelopment I After will apartment assets, subject and Full plan ability stabilized need in that, leverage the to public to tax the allocate the per capital this on the of total Kimmel, in net add While five Keith communities, development to as the and share to be execution entity Head of them and and call Keith? are and to XX% with board peers, development, have shareholders what as XX nontraditional said. expected like few AIR value dividends to

Keith Kimmel

Thanks, Terry.

us brought promise. and of outlook quarter long-term third The optimistic business. make in our and for the mix highly challenge, Encouraging recovery about uncertainty signs

and New was up year-over-year. leasing XX% rebounded pace

units X% percentage, best forward cut increased half. been from our to our in a indicator today. lease more lease And As July by have occupancy X to result, of

been high high consistently selections collections for paying since resident Our April. standards are as have dividends,

from is was X.X employment, schools, satisfaction, changes that in with despite Simply rate environment on which apartment Our health an net stars of our while as value. recent on due were the customer declined residential than the in court the X.X% world-class in team XXX put, this was energy the lease residents to X.X% points, XXX to and year, Bad of better expenses drive level of Same-store measure down attributable Thanks costs lease daily courts, our is down core debt lower XXX our same and constant businesses were efficiencies was up points XX.X%. with new our XXX this renewals, quarter. its homes, XX,XXX giving rates service X.X% all basis XXXX occupancy regulations. points regulations. X% including down X.X% increased occupancy service. in was utility closures basis X.X% in third XX.X%, income. with down blended from And X.X%. to time, last growth points One Angeles down rental revenues rates we turnover at and initiatives achieved net average quarter, third of expense at Average remains renewals Los basis rate basis

the income depended quarter totaled as As units. X.X% across communities largely In usual. a our in markets, operations third on quarter that result, said, were net XX,XXX geography. the country stable same-store results With suburban year-over-year. distributed business operating These decreased

units lease of X,XXX and net lease residential rates up more to University urban new will negative and occupancy In announced conditions and next were was local virtual. many residential frequent, down nearly was fuel was performance our In both income growth Turnover In points. was were of XX.X%. fall rental demand those the XX.X% in the And cumulative offices was Our Blended were XX down were conditions felt Comcast XX.X%. In Occupancy Center XX%. the led when Towers. semester of to X.X% rates rental income net turnover urban areas, basis was flat. blended leading rates located Drexel and City, neighborhood, impact City reversal X.X%. this including year. UPENN each empty Philadelphia, and

their students in when office. class shutdown eliminated and Mid-Wilshire to the in Angeles, Philadelphia interruptions nearly West city return turn expect return of the In entertainment the We spring. to employees to shortly Los to industry and the around demand

remains by see allowing coming XXX% up skies pressured the third recover we by compounded rent with is year-end. to XX% anticipated Occupancy rate blue to fully October. and up laws and local quarter While in live year-over-year in losses free, were residents leasing

Northern apartments. face in remain neighborhood of The in with while XXXX. California, Pacific to On for continue tech Redwood stabilized likely and City the policies rate demand since and changed has tough and San will Peninsula Mateo and the weakened demand work-from-home challenges companies

limited down for and down and we year month running year, October, the of is blended of and increases is exposure lease lease X.X% business the end continues includes up XXXX. rates to last these solid our submarkets Northern East still leasing rates Marin In Jose, occupancy Bay. into expect Our San California average through pace in and XX.X% diversified renewals portfolio XX%, further remains and performances improve, to ahead is with in daily X.X%. Pricing new challenged the

some markets July. winter the through share has months of bottom. leasing that the made the suburban since we’ve with dollars anticipate will we transaction of full, as market our urban on For an our In stabilize. but rates we’ve and And year also and rates, rates healthier markets, our improving. new tough context urban are seen XX% the them leases been signed We for in reached hold each trends these have suburban our up month we’ve increasing three lease believe

recent Lastly, October with collections were consistent months.

New ordinances bad an growth bad delinquencies once collections who of year. coming are from provide We since been on moment receivable improvement accounts with the residents and debt and details have a local the in emergency beginning more of more will our anticipate slowing unwind In our Paul debt. closures sometime next delinquent pandemic.

continue wheel the on We long coming a hand for growth building revenue the steady to and keeping focus year. game, sustainable the on

home analytics We continued smart in productivity our each improved with in-depth Redevelopment. I driving deliver our Vice of turn over most to have service results, field consistent a centralized serving to strong will innovation, Wes? expenses thanks call that and a is now And and delivering intelligence to energy, members unit. innovation hold of flat, dedication operational relentless with residents. our Executive results, President and architecture execution, consistently team your that, enabling every Artificial importantly us decision-making, and exceptional place you team to today in the guiding our Pough, and outstanding our Wes technology my

Wes Powell

hard this Amid projects, year’s advanced new with major high-quality Keith. apartment residents. fill construction opportunities, Aimco homes the has worked newly on team delivered to you, Thank investment our sourced challenges, and

current XXX included $XX made the Aimco First, I’ll site. the on development Bay Edgewater and August, acquisition then an X,XXX zoning. in touch price turn more acquired apartment a plus new activities. XXX waterfront quarter The building residential we’ll neighborhood units units located on adjacent feet square additional for the to than averaging will during allow development a In containing investments the of million. over Miami’s Hamilton under redevelopment and for parcels our Combining

sciences of We a as are of a building much $XX development to the company. the development rights and redevelopment Also substantial the planning value made commitment on explored. invest being existing phase life and the estate during as million $XX second IQHQ, invest premier million focused real available in to quarter, unlocking a the Aimco is

the expect secured business, be Aimco future growth of new plans with company, IQHQ actively investments the in pipeline. the we strong and contributors multifamily Aimco’s portions our to grow investment to right these our collaborate opportunities to addition are In to will sites. the pursuing of development on we additional Post-separation, development further

Now, Mosaic leased in projects, here turning to was redevelopment XX% and highlights Boulder, homes. Parc where October. ongoing as are in At his construction the of completed Keith earlier end the have our year, of development apartment team some of the and Colorado,

will been months. completed Anschutz here homes, just townhouse XX At Illinois Elmhurst, now too, are on year-end. delivered, XX complete, XX leased XXX City, the be being project Medical been is leased, remainder in scheduled of substantially Fremont XX% The to remaining all delivered leased. in complete the over the them have the we’ve in homes with before XX% coming At those and Campus, Leahy Our have over of and delivered XX XXX homes and Redwood

projects, two for remain expectations. respectively. final delivery rate in early Tower in the original in has of performance Miami and those XX% mid-XXXX cycle track Prism and in averaged on at lease-up projects North our Cambridge, long currently Flamingo Initial on Our initial Beach, rental

results to call I Aimco With NOI that and yields over onsite over continuing to Paul? their offer Chief exceed lift. of or as dedication our positive underwriting that, turn teammates like Financial believe we our Paul past Officer. a local market and construction meet Beldin, impacts special months. my few the would strained I However, thanks would to continued will for now conditions the these

Paul Beldin

Aimco’s will quarter bad collections up I wrap with sheet, and and a financial Today, Aimco’s dividend. third of brief discuss balance then Wes. discussion rent special you, results, Thank announced debt, previously

$X $X reduced $X a transaction. reduction XXXX, of the on September mentioned, trailing leverage-to-EBITDA from billion, to California third X.Xx. As leverage venture basis joint Terry $X separation in the The we a closing to from by billion expect leverage reduce and XX-month billion billion quarter the

$X.XX pro FFO was by Now, $X.XX year-over-year. X% of occupancy property offsite COVID-related FFO $X.XX on to quarter interest year-over-year. forma $X.XX COVID-related interest to the share reduced Aimco financial lower decline attributable the and estimate results impacts of We net income The and lower loan Parkmerced impacts or remaining third costs. of associated $X.XX per other expense. quarter was and of mezzanine increased third $X.XX is sales with down lower the Offsetting impact

subject on apartment collectible the of stress recovery points would expect recognize points points since this for in considered residential bad the against or billings. points, quarter, and also rent rents, like Residential financial residents recognized and approximately debt The individual the not did past basis amount, not storage reflecting does economy, quarter’s of residents delinquency to such basis than of offset security the rents our XX been of closed subsequent steadily residents, basis therefore debt. customers’ not related of of collection minute bad items months. rate date. quarter. have deposits would July. In percentage cash, to is Of points was Aimco the same the reflects second revenue The Next, occurred paid city these delinquencies $X.X is and better are discussing basis the is by to not based remaining Prior as third X the third Aimco a collect review is I on therefore credit. fees majority XX approximately million This the and spend ordinances XX course, paid declining points, basis but in and to rents. initial by Aimco parking ordinary in and evicted enactment XXX statements. has as Aimco collections and have XX.X%, all includes during would residents. revenue quarterly and whose debt XX.X% amount, revenue. rents in owed continued initial elevated third the XX reflected who April courthouses, XXX been to basis as attributed amounts These of have restrictive quarter XX.X% bad

to points in XX a We until decline continue more reaching normal expect basis the XXXX.

to we opportunity look with ordinances us emergency providing to to also rent-paying live residents. expect that we allow residents rent-free these unwind, As forward, re-rent apartments to the the

Aimco taxable on to will prorated be for cash previously will shares stock. dividend reverse will $X.XX to typically quarterly taxable paid the in for a the elect of neutralizing up need turn it declared two paid stock common Rocco, assets stock. the will issued XXXX to special XX% eliminated that, amount additional payable and per to Aimco’s venture is of announced, dividend in X of regular Please reduced time to to common dividend is due open refreshed scheduled which XX, the the limit dividend shareholder be joint tax will as concurrent common partial be in impact AIR queue. I basis. or of per the the remaining The Post-separation, on expected of you questions. share, common Special and the XX your the over next receive per the the we in share at dividends Shareholders for or the option November gains per shares sale either in of Board distribute stock. on questions gain dispositions. $X.XX Directors the share dividend. split distribute If to special a resulting effectively will call that now sale or question. first With with from Lastly, oversubscribed, October other the California the of dividend of XX% acceleration November consists allowed on cash the cash record receive the option February. either and covers

Operator

Rich SMBC. ahead. [Operator And comes today’s of Anderson Please from go Instructions] you. Thank question first

Rich Anderson

Can you. hear Thank me? you

Terry Considine

can. We

Rich Anderson

Okay.

Terry Considine

Rich. morning, Good

Rich Anderson

morning. Good

property us you I said met I XXXX or but so and But was refrigerators. GE. you box thing were I going companies, point judge buy create and And output, has to multi-family the do markets multi-family the you no all up to was said, been went you’re me all us it like on what tax did it think course sell the you don’t changed to then. going in sense don’t think given bounty? relates you change the credit the just and redevelopment, back complete it look affordable management, as a longer made to the taken of outside What don’t And judge to time public a Terry, Has them valuing to that asset has first much make to that those other industry? stuff. over such housing, on work of not or perspective businesses you So, I management, well

Terry Considine

by is increasingly public and values markets the that that the seems question excellent more does an net many asset those a price the to Rich, transactions value. better complicated markets reflect measured it marginal setter, of are me in and FFO change public

And in pursue alpha, would business. and in so it, – that undermine with in as you we FFO our we those as category competition called be

allows benefits I so to both think market the the the each. separation of or And see

Rich Anderson

step manner the of that umbrella? be we’re in a now behind get will under time and happens recognize although under be this that the risk recession right to we What Is when because again time be that, and the past develop there past roof, a to one a is to Okay. under now one umbrella? sort pandemic motivation and is a behind you developer be developer everyone a the I one the could separation

Terry Considine

dividend and a I in it vanilla will, will predictable is cash have demand be will for that and FFO stable the buying just recipe of [indiscernible] business by demand future. and opinion place example always growth – properties you be for a Bent to term be that think superb the – there if will my and of from management adding team in Keith and would long stabilized Tree with the opportunities his

Rich Anderson

Okay.

Terry Considine

Thank you, you. Rich. Thank

Operator

ahead. comes today with Zelman Kalmus Associates. question Please next our And from Alexander go

Alexander Kalmus

Hi, taking question. thank you for my

those versus breakout just urban curious there, suburban to how are the you properties I’m provided but of classify? the demarcation you you So, that coming

Keith Kimmel

located. where of, Keith. there where The take it. geography is, sort we’re is that is getting the This and I’ll they’re way physically

Philadelphia, emphasized that a California would of Los Angeles in my remarks. prepared and you I So, I’ll give Northern one-off examples couple be But different.

So, lot example, of in portfolio Latrobe have district. Washington, there markets, most the our an in we have a that’s D.C., – – suburban we as but in our in is

an that’s the North So, lots in suburban categorize have urban it’s Similarly, we Diego, the San of we – property that are District in San city. a one-off the Gaslamp we in in would locations location. Broadway our that as have middle of Diego, that but Lofts

So, performing. these really they’re the how located they’re that is separated where physically we’ve way and

Alexander Kalmus

have do overall got have the it. about you’ll you. think to after Thank partners eliminated, potential it, What think transaction do getting your tax when you Got there, transaction won’t for your but post-spin, that And basis basis. multifamily? XXXXs the you will that market

Terry Considine

take could Terry. I if Alex, this,

I profitability think taxes or transit the reduce increased It’s tax – simple exchanges of reduced. the as activity. as that that be will transactions

Alexander Kalmus

Makes Thank sense. you.

Operator

our And Askarbek ahead. Please with BofA. Alua comes today question go next from

Alua Askarbek

Hi, taking everyone. Thank questions you for today. my

little I other assets properties. just mostly time it – New your believe City you there? want I guys this occupancy urban, how performing? under see believe York talk can to those about is the was a are, just put how if So, Those markets. guys are I wondering I you bit

Paul Beldin

Thank is Paul. question. for your This Hey, Alua. you

the has been in That markets New quarter. classified into been properties, – contract the And day Edgewater, operations. from And did we but we our your of rationale contributed that about other in property, under River combination comment XX% which Just was York on New of sell. it’s move the City over our for York to York have New that New Club one. Jersey this that has is those

you made York? think additional some didn’t like you in color question, would New do on Keith, we response present sense separately add that New it And But so your with to to York. to being gone, have

Keith Kimmel

other we it’s contribution markets in city. impacted on of walk-ups. really definitely Well, say I is a that’s small But by in have And Alua, what’s They here. the thing fraction been New going are City. in the the would less than have main that there XXX York units

Alua Askarbek

Got it.

Thank Okay. you.

Operator

our question comes And St. Haendel next today from

ahead. Juste Please with go Mizuho.

Haendel St. Juste

Terry, Hey, Aimco you. money a perhaps for or versus march development here? talk of lot good can toward especially million make the investors How the did understand morning the down pushback given a you of it’s want question out the about investment or in but making life any bit the you skepticism you excited not potential from decision the company, not returns go or mostly, And help simplification? path? maybe prior enough maybe us here. weigh to behind sciences could makes I pushback you scope the you pros $XX the to who then, Thanks. you withstand expected a skepticism may more opportunity? What specifically here know

Terry Considine

to Rich redevelopment Haendel, would the earlier the development call, we company in that the as of first, investment as these and we say the an have two on this is future with businesses. discussed different that I really

business stabilized by apartment that measured measured predictability best and ways. by The exactly it’s asset creation. many other the best with in value development are And lumpier and riskier. You’re communities each they’re in FFO conflict is and right net

is an is business. or best issue the be what second business so, which their to And soon that And allocations in able they’ll suits them might choose this for be. investment that, shareholders

shareholders. I of address would how the that’s So serve how to question

collaborative Alexandria Biomed and and expression an entrepreneur whom other the must such, a and And very success with $XX we opportunity we The with of know, quite talented Gold, him, Allen you a we to was second will do who’s had commitment million bring is in opportunities would that is it way with think quantify great to question invest the substantial. cannot to be going today. expect But it would again.

Haendel St. Juste

portfolio today forma that’s And Certainly acquisition some could Miami think potential peers perhaps Aimco the be rates only over you of got about Got the more some talking on going and only more not of high a maybe add of competition the market to look here across pricing talking you Miami it. it terms heard or markets what of perhaps about then. broadly as the exposure? IRR talk just bit like cap market in in today like seeing asset into but would there, the it, you’re side broadly pro sounds was Xs. in these where one you have maybe your about I part in inclined a I

on So you you’d are just there? for you Thank seeing you. it only not broadly intrigued this pay about what out what else but what curious asset,

Terry Considine

I’ll deal over Wes it start two and I’ll points. it’s whose then Haendel, and But I’d a turn Well, it to is deal. make wonderful

of deal was or under months that or all First I think for maybe. year or eight seven this nine a contract

closing. it second have the market important a And that much long less volumes there’s the transaction there or two So or liquidity collapsed, in year that been today, is three in much, ago. most is fact have than a today would

find today. deal it’s and as representative of So I you’d speak use But of don’t know year ago a terrific do to that? want that we can take an what you and, example something to that Wes, a traded it

Wes Powell

Sure. Terry. Thanks,

that going number seller why that the You’re engaged about population close and we August opportunity we’ve South demand in they through exactly was had like sense for the XXXX. and the on of world given have the right. This to into of on and that is to talked we in made We all increased transaction. translate price housing. growth before in all factors work a Florida, the an been long-term since spring opportunity Haendel, a but late events come the with

of existing about well. just mile development north one of Park location north Of a condominium know scarce that course like pretty own that that. successful a land we Related is we so It’s today. the And and and waterfront Bay we a It’s property did large to then, renovate. redevelopment. The is and operate like asset future out The know, are so one ground-up prices. development. we optionality that investment you high to And have also is at has apartments sold that plan has bones, right for we views in terrific itself as the great

And timing when so, homes apartment that – almost waterfront ability XXX and a add an it to parcel the makes on with the site comes adjacent sense.

playbook the fits going opportunity to well. it long we kind And overall, a over haul. be the of good think it’s So,

Haendel St. Juste

you I perhaps And it. ultimately concluded the how follow-up may, share and perhaps versus Thank Got nine could months anything you here you. started where ago? one on if pricing

Wes Powell

pricing is on The we conditions. much I’d Haendel. that’s on was say But Yes, better a also the as was circumstances than it it first general the when market reflection as seller engaged.

As like volume significantly was down mentioned, locations Miami. transaction in Terry especially urban

it it’s real keeping they’re to for might So normal good what trade a an But the we that have. about but it’s of feel we would XXX have Again, that apartments, what mind bought hard just asset at building like at. in again, a twice feel basis. a size like good

when you was buy. pretty think good think that about way, it So, a we on it

Haendel St. Juste

any re-pricing on a I today? quantifiable curious or other measure? do appreciate can asset of that, way in that quantify cap what market you Just type any has rate and guys. values But the you maybe occurred

Wes Powell

come deal. We XX% about saw or the engaged from XX% pricing first in when off we

Haendel St. Juste

Got it.

Terry Considine

is that I typical and of that would the market, also add. Haendel, But negotiations all many isn’t in

Wes Powell

events their exactly the in circumstances the I I as that through making transaction but the market to was seller particular again values particular Yes. spring. And and that that’s is read went point Haendel through wouldn’t the and of right the and we the this

Haendel St. Juste

it. got it, Got

you. Thank Okay.

Operator

And John BMO. Please Kim ahead. next question our is go with

John Kim

its announced timing of the also your of for and looking just I Good thoughts this ISS be split? what are move as that should special when And far to your the as may shareholder support next your Earlier any timing today, far the with hurdles as Thanks. as morning. for occur we forward ask vote. wanted

Terry Considine

read will touch public that all another be perhaps, sometime to or of They John, But enjoyed and think discuss back SEC. it. next is part or had a we I not time. it thoughtful with one that be a helpful completely discuss we’re meeting think and by come of the important to have discuss in I invite But filing will It have chance question. at I public to a being think week. you chance them. And did ISS. it’s be reviewed all to an prepared it to we’ll with this were the I We it we’ll today. way

John Kim

you are to this target know, you split the on as still complete year? far As

Terry Considine

also around John, a issue. have courteous quarter. both want is conversation This We really to to I important really want this clear. third but do the very focused be

everyone. think You’re we all really the be to next transparent better to when But the it’s raise facts to going I have right week question. addressed

John Kim

Okay, that’s fair.

Given cap you that Aimco? the potentially compression to additional going peers occurring any portfolio of including about, are contemplating talking separate been have there has the some and been rate New that’s dispositions that are you

Terry Considine

this again Terry. John, is

you you through see compression of cap think One sold what’s to is course down relevant. volumes that so to the the are is what’s I rate transaction something and have being carefully. have look

through and illiquid of have filter the But all, Second down rate of so is values relatively market’s gives lower I that are steady right kind to are that. and now. you the incomes you fact a cap if biggest think

and was have California conversation later. more we the of are to interested of ventures the very something we’ve we’re going Fielding interested what a and will of that at the independent portfolio to of the of we’re be act. in which that, For us, timing would separate function – pursue of companies, along probably But joint a the where to sell Patti the is Aimco successful wonderful separation second be the lines – more the liquidation that

John Kim

Yes, thank you.

Operator

go today And Street. John comes with Pawlowski from our next Green question Please ahead.

John Pawlowski

point maybe the to is plan hear Terry, did the portfolio you separate there, right following I Thanks. still up that post-spin? on liquidate your

Terry Considine

– the is so liquidation talk the is next intent that John, to I about to really to but week. the next want of that time, companies week, complete let’s AIR, a forth about de-levering talk another at that – of and perhaps the and post-spin have but

John Pawlowski

mind, is Chairman its spin like I and about but and is the before. just One of Aimco I struggle you’ve the truly in your things and talked at think In I analysts world independence. CEO involving helm space, what about Okay. with maybe that in no would talk the my shared where the AIR same independent. office be skeptical colleagues if to same

to Street the the colleagues, split into colleagues the and I be that new if entity. my my new new former two in entity Green got entity, and of boss I’d boss that was partial think

is convoluted and Aimco are to is here that make that between sure AIR? this not length how coming non-arm’s going period So, you a

Terry Considine

you be to it John, about will talk – think I am satisfied. next week, I hope but going I

focused We that at in We board something have been report to is hope this have of length. next The will out area. to hope I talking shareholders. it you. recognize concerns on many week, And great that we to satisfactory be

John Pawlowski

thank you. Okay,

Operator

our And KeyBanc. Please go next ahead. Austin question today comes with from Wurschmidt

Austin Wurschmidt

Yes, thank you.

billion. focusing another redevelopment. development no – about $X leverage a complicated or longer post-spin lot be you AIR will Obviously, on coming with talked So, by down

into piece the in external important cycle. opportunity So investment that acquisition becomes heading next the leg

high to So, to markets markets greater guess I mean, any new aversion including markets? what with are attracted I you potential the given regulation,

Terry Considine

Austin, exactly you right. are

already to in Carolina, market the additionally, in Our new about analysis just Rocky Florida, that faster-growing and capital, as be have West. appetite that not that Georgia, economies. true is South will Florida capital has general. Tennessee, freer are such spoken and Florida for to our perhaps, in including Wes North markets but a But reallocate Mountain

Austin Wurschmidt

then, That’s life helpful. there? just of thoughts. commitment, funding to build the curious what Aimco with sort guess foresee capital properties the how you IQHQ, the are those associated on new multifamily it is options out pipeline for I And over And of the science that Appreciate development? a switching big

Terry Considine

is Austin the I I to be of we that’s think, or investment something substantial. IQHQ will activities multiples prepared the again, many week. inside expected clarity, because activities But at will that next be pipeline quite the for of one – just be the discuss that again, scale will length think

you project so, million and it’ll is buildings, or it’s with thing financing a the then typical – was And $XXX funded would investment. be million if second are apartment there million, a $XXX multiple more that private be And company that $XXX can likely in building levered equity. to that context or see and

Austin Wurschmidt

Got these in overtime? would Are of be locations ones that any interested AIR it. owning or assets

Terry Considine

again, want next dear week. next I really My week. it do But about that talk to let’s talk about friend,

going road we’re I and eventually that’s down ourselves. to a lead going it’s think that to be ahead of

Austin Wurschmidt

Thanks the for enough. Fair Okay. time.

Terry Considine

bet. You

Operator

And ladies John Please ahead. follow-up from with Street. the go Pawlowski next gentlemen, is and question Green

John Pawlowski

could maybe operations then, Just Keith. we talk

been you bottoming of gives of refer that skies what before. bottom and the more not yourselves now. you the today positive stability and bottomed confidence prior wrong comment X ago? on months to, terms markets future bottoming points we’ve trying to little plenty have trends that of these because you blue a curious inflection on predict because have ground just bit to In forecasts the what a And peers But gives hold on internally. confidence versus a and right and can you lot Nobody used term today the the I’m curious the

Keith Kimmel

what and in John of thanks a and lot you question some the us. me give There’s let for unknowns seeing makes that. thanks the of us think But front obviously still of caveat. we’re for what insights

look portfolio when the we mid-XXs. third and looking and our urban up we high – suburban at suburban So as our at quarter October type of XXs. now our to seeing in running it finish And was the situations, we’re mid in

I started very look in occupancy it have stronger. XXs. we we’ve in at Angeles. increased in has the areas, also use is Los specific in the our that When see tick rates What up. relatively and gotten example flat portfolio a have that to urban And will while We held seen same

to we when path in year-end. we and getting so, XX% us and starts to see the Angeles look going Los the XX% that now we finish by in were a running at in we’re XXs, And and quarter, third high-XXs in the mid

that a country seeing there’s show starting we start to the across there series blue are us skies some of that coming. So, things are that

that or Now, says, be us public back, Philadelphia, come In I’d point us the a and University. will us Drexel we Evanston, another we is statements around hard will way back? open Illinois, January. thing happens open those to an working there Whether but that, like of January came is does you at from are don’t a they Philadelphia come to we a indication to nearly they administrators it an Comcast back that who that is optimism. to not? we a in struggling And come I matter one gives back, There When UPENN I some of they with and would have they give example, week. switch know does out in know. live in that find cities Northwestern that that could any institutions a on in went property have in occupancy work right that that that given have next not XXX% in

think we’re if a will strong. Philadelphia, in of looking opportunity, know back And switch to. so, a it’ll come dial for we opportunity, of what come But type back forward plenty particularly not but that of That’s start of that we are an these there be hit indication are in other shoots coming we’re green us that those things different that optimistic the other variables, markets but things. give there’s bottom, – that benefits it’s we’ll that we’ve seeing up some market-by-market, plenty there’s

John Pawlowski

months markets, the ago? Thank that improve come you than did – pulling occupancy it. has in Did the the details. through that for X harder lever on non-binary, Got concession you non-university

Keith Kimmel

it’s John, a And as them total marketing revenue. to first been solved about – think we – of think all, it’s we we tool. concessions, about when

that dividends lower and have a hand. of that concessions. a to us But the the some pay appropriate so, what’s your future quality, a would would have around in of of you are somebody as retention been we been both happening person we And maybe that the will it’s steady will give we combination around when that think markets example, and there XXXX. There a tried pay combination also a more long-term customers, to concessions that has things ultimately been it’s it’s lot of decisions make or an making that decision-making is in who resident ways to you isn’t in

pay we will has occupancy but others, Our than in way beyond. XXXX which a dividends we are building lower been steady believe in and very it in

John Pawlowski

Thanks. you. Thank

Terry Considine

residents, might of add Aimco with years. select for that said you what Keith contribution so to so today or I to us particularly the consistent important for well, live three period that have longer but not have next two just a if time, residents John, it’s a Yes. because we

to tried to that picking I the things be the will I cite my also disciplined think several our one great Keith remarks who in next neighbors I And customers, done over about be so, but has for existing think contributors is residents of years.

John Pawlowski

for the Thanks Understood. time.

Operator

ahead. Please of BMO. John is next today And question the follow-up go a from Kim

John Kim

student markets Thanks. you virtual, Keith, in Drexel and going weakness population? driven pretty have you by can that any just many remind how are in any have if being us that least of a residents – the at university sizable just And other students? you mentioned your there Center are are Penn City partially Philly

Keith Kimmel

the for John. thanks question, So

is really, be building. have about We [indiscernible] about call our place. And one more we the that we have Park folks And with vibrance then, to creates students. – influence and that happens X,XXX direct would have is to in some community. student being importantly, city building comes I goes Towne But that a would particular those residents what it life

Towers, the – think buildings so, in happening. things Those kinds restaurants, And be businesses, other think think and are there. all Center also The about the about impacted by Comcast of about things other that will City,

the vibrance we And the ultimately, that wonderful there’s the that city and, feed rest those and business. so, know heart – through of comes to universities soul the of

John Kim

only where you have say like this? such your Philly is a dynamic you strong market Would

Keith Kimmel

which John? In context,

Terry Considine

of College and Northwestern to in say mean And John, Miami, just of whether so from certainly it’s to to Chicago Evanston, part Illinois. University talked important one Keith’s demand Merrimack or mentioned across Andover, influence area have you’re In all in already Drexel top be going an University or country. limited the it’s North of and another. to forth. are Penn. because We’ve Miami true students mind, markets hard, Philadelphia. in are an about interrelated, But I going it’s that very

up across portfolio through it demand as the the country. does – will show So, it’ll apartment it throughout

John Kim

Great. Thanks the color. for

Operator

from a is Austin ahead. KeyBanc. with Wurschmidt go Another follow-up question Please today

Austin Wurschmidt

income market and you guys. sizable pre-COVID are a Appreciate completed how tremendous stable in mentioned taking values amount the Thanks, perhaps But And there of you just and I a pursuing rates you versus hasn’t been cap JV a streams Terry, the you’re levels. referenced additional may sales. coastal lower transactions. follow-up. lower reflect recognize

view your multi-family what properties. curious just values is for So toward

Terry Considine

follow-up. the for you thank Austin,

values by that think of thing cost the alternative one the affected alternatives are I and is price of the forgone.

predictable, measured as we’re XXXX, current hard a leverage during return, and do to including rates, intrusion. are say, a a demand if government that’s asset unprecedented to but with relatively can low factors that seeking class, a flowing so positive look over And simplified as if by it I in cash relatively an there apartments we at time it’s other be world predictable – of in as competing low many terms of for way interest very But pricing. most in say

don’t in of some reduction are to being be worked think think those think in to you I much think And factors say, reduction a which this intrusions out. and due I the to think seems – recovering that I valuation. rates. that worked been I are recession why would as they’ve in probably as the probably to out be value. that’s logical So been regulatory that low I offset interest that see But by it which is being there has

Austin Wurschmidt

well the by of also the act. potential over the balance the to one, Got market with with how seemed then thoughts. just act have attractiveness second time? first referenced received on Aimco last then joint joint it. But And simplicity ongoing that venture. sort curious another on planning adding Clearly of Appreciate during on and a you relationship I’m the you venture a that your focus along going forward New you are one

Terry Considine

is we question might of in use were would interested balance. balance. question think And to And raised it’s a of would right applied you life incremental act, dollars, about second pricing. say but our talking are an let’s like And be shareholders to they have the the be, ask well, stock might be to that whether ourselves billion proceeds. what all of are to natural they right, if be are you would see if repurchase and all their we kind a I Well, that scale, that,

Austin Wurschmidt

much. very you Thank

Operator

next today go our comes from Please question ahead. And [indiscernible].

Unidentified Analyst

actually pay to not about quite rent your quarter a increase – Nick. is of of a saw long one earlier properties [indiscernible] properties time for a Hi, for you for rent one guys. this or in Really question we no around on of few This come. does the or things

it rent ready So seemed to that to who there that sign with with no going longer certain term imply to are be you leases increases. were were tenants

one, what’s of that’s be a as or there the Terry, profile what words, a Just And of part whether vacancy entity. driving or you of attract tenant the or the that remains that these to kind figure these profile entity are second are in the of trying sort development-focused to trying going assets promotion. to this sort is and market programs your entity concession

week. second Now, you fine. totally can defer the to next part That’s

Keith Kimmel

what you’re No, seeing take there it on some of is but Keith, it’s sure thank of looking circumstances. you. I’ll exactly Thank up I’m sort in is I’m one This that or something you. that’s likely not long-term guessing certain whether our and we promotion. What leases websites do it’s you’re will

leases And what upon it in a agreed for over rental so, that, that an the it’s things longer XX write traditionally how do what will rate time XX-month an sign way be leases, being may that a line period like only inquiry is about months. which some we have will people that tag is, we

Unidentified Analyst

we it assets see of received Correct. portfolio? that other across been of And on your should any whether color how program and more has

Terry Considine

And secret variety put part in will our unit we of offer terms. it it’s toolkit reflection into not of market we is pandemic, and types, and our different this that a of it that is is which sauce, a So, without of other lot – conditions think about something how a the getting lease things let’s way.

Operator

this the over remarks. conference management final Thank to Ladies back I’d question-and-answer concludes like gentlemen, and any Alright. session. turn you. to the team for the

Terry Considine

this we Rocco through the have the Friday. we Wish of with you interesting it very you, that opportunity had you everyone very making and reporting to long week companies both other appreciate weekend look chatting sector apartment proposed. I endurance as separation call. and you and to thank your I you next in of in on a happy forward talk about follow. you and weeks with I know many thank Well, the much so And

have and a weekend. So, thanks again great

Operator

Thank you, all today’s sir. We concludes today’s call. thank conference attending This you for presentation.

now and wonderful a may disconnect day. have your You lines