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AIRC Aimco Properties

Participants
Lisa Cohn President and General Counsel
Terry Considine Chief Executive Officer
Keith Kimmel President-Property Operations
Paul Beldin Chief Financial Officer
Conor Wagner Chief Investment Officer
Rob Stevenson Janney
John Kim BMO Capital Markets
Zachary Silverberg Mizuho
Sumit Sharma Scotiabank
Rich Anderson SMBC
Alex Kalmus Zelman Associates
John Pawlowski Green Street
Call transcript
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Operator

Welcome to the AIR Communities Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, today's 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 expectations. projections call, on are conference judgment, management’s related this forward-looking make statements based During to XXXX statements found certain of to are uncertainties, These description a risks which our in and be SEC filings. can subject what materially may discussed be from results today. may Actual differ We'll also such financial non-GAAP as operations. from discuss certain measures, funds full in information that communities.com. as are are to reconcile website, supplemental These published the most AIR’s of the the earnings defined and comparable release on GAAP measures part air Considine, Terry in-charge from CEO; Keith Paul come our President today remarks Officer. Our Kimmel, our of Beldin, Prepared Operations; Property Chief Financial Other will question-and-answer prepared our members are of follow remarks. management present be available our will which and during session, Terry will turn call I now to Considine. the Terry?

Terry Considine

for year good was to in Lisa your the of with and in you, Thank AIR. of a morning Aimco. XXXX AIR Thank from transformative all you interest separation you this call.

unlock by were The apartment outperformed year. separation REITs we of total During in our the XXXX September through of announcement able the the return value. the the billion companies end more points basis combined to of from shareholder large than six $X

right encouragement attract and all, Lisa by of and their engagement the for On who At our of with Jennifer Lynn with Most their shareholder I important me this call Cohn at thoughtful Nina two, led for advisors their the on course, for well plus six yield Johnson their hunkering the apartments past and teammates by my economy. I listen thank shareholder many difficult combined Paul the we XX, the and worked work meetings invest best numerous dozen net and as were has search traditional individual and board investors self-confidence, In advice time and hours Ann efficient forward the to a to of a also who prefer of four process future. hard investment Stanfield Aimco. separation growth. investors smaller gains recommendations, shareholders play value also you three AIR designed separation a Beldin, was years remain and years. and and boards to Kathleen right predictable generally, and Tom the five to In REIT one, been creation, And as Mike and believe to further made delighted when Keltner, and Sperling, required and joined about provide Devin calls share many balanced AIR over great my to long apartment the were two coastal Tran for you of grateful decisions. I'm We we changes Bob Murphy, the The rewarding make second. each sound response. in way shareholders same Stein commitment and Miller, current the with decisions look is in time super down proxy also as to of fellow the directors, for Rayis, other We with future. Nelson, so in carefully most on. period, well meetings month income simplest the price our basis, and will REITs returns will that vehicles John

detail. discuss as the COVID recovery together stresses a this further We a that costs transparent from and Keith low strong portfolio safety believe gains simple best-in-class New sheet of of we business a AIR high balance share greater with in and well a underway related and a that is own management, current expect investors diversified provide will property year, return. overhead

we're the United confident on believe that the perform whole. Over And our markets will and those will better as term, bullish strategy, team. our team We markets. our our longer outperform than in we're a markets our States

We become what cost will we more best-in-class operations, on of expect favorable growth property upgrades, have based a a regular path capital. solid for

year As created what turn this With I the close, last for I call Property opportunities for again, Head Operations. the offer my beyond. and for Keith AIR sincere year and and teammates they've that, of Kimmel, accomplished they many I’ll to Keith? thanks

Keith Kimmel

finally, I'll discuss at tell our Today for outlook Terry. January Then Thanks, leading for our indicators and full AIR. XXXX. our look fourth results will us and the the for new XXXX discuss results quarter. the what also I back And will year about I

Before and to doing at picture. so, a take moment want I look the big

short It X.X%, was the revenue term as only there's variation down year a you'd Our was income XXXX, expect long-term is it X.X% XX and was the X%. In only and net tumultuous down revenue around always trend. rental year CAGR negative. was yet

expect later We growth this year referred long-term our resume and to to revenue XXXX. in rate growth

and our health down the X.X% basis X.X%. is measure operating turning down only X.X%. expense straightforward times the controllable points. was most of XX as was negative full which Now expenses were to define of operating a our net core of business expenses points. This XX up CAGR of results. Residential residential leadership down total for basis decade occupancy extended Revenue year rental rate, we expenses with average were Controllable and XX our income, year

echo’s measured customer X%. increased net XX XXXX. results X.X due consistency And rental by three put unsettled during was income the city in Operationally was Fourth basis satisfaction in Finally, over team resident down earlier Los XX,XXX of XXXX regulations stress the place second economic were turnover XX.X%, residential times. net financial In fourth points even the was X.X%. quarter events negative. The down onerous better surveys in by and as year, lockdowns of the terminations was the Angeles. and lagged demonstrating the to than quarter virus the of our quarter, operating lease income in

year. XX.X%. the commercial a X.X% income in transactions in year-over-year million million was for During growth $X over renewals up made up of X.X%. Angeles. the half down a Revenue down reduction to with strictly which X.X% share fourth the as coming rates in blended debt the were Los after lease timing. was In from was a quarter and the were increase increase But lion's the the of $X leases, compared matter quarter Expenses X.X% new full were down up X.X% of impact bad

As of a I occupancy. our a result, as fourth of acceleration quarter net quarter's to and including indicators, call, was pointed or an pace operating income XX.X%. percentage strengthening recovering last lease predictive stabilizing On leading of leasing down

occupancy sequentially further months. for we its These Residential growth leading on speak. is consecutive predicted, in has XX.X% from of in August XX.X% rental more a continue income five XX.X% show indicators increased that today, average As to and as daily trough January to improved way. to occupancy net

will is see demand we year. leasing these points negative trend. And And net comes optimistic Our rent lease for strengthen better this that to In leases is tours to of leasing continues I'm to that is by With than occupancy December pricing January, We and month in expect rates has the X%, January increased September. lease up beginning quarter. and higher pre-COVID and stabilized signed accelerating In improvements XXX to were reinforce leasing strengthen. occupancy prospects, since every signed basis indicators typical power. relative seasonal have in will that levels good. Blended fourth with return rates position short, from all last. this pace the end

about by in be our Diego leading rates to where five to revenue two of stability With I prospects, eight in growth flat year. core optimistic, to indicators revenue or of flat Given mind, XXXX. our portfolio up. half populations. expected growth and X.X% into dividing be this be lease our San or D.C., I'm we could in mid With Washington slightly Denver Boston, growth and new is look positive over markets where portfolio, expect strengths the XXXX be our revenue In to positive is particular Miami, expected in those and

XXXX good Angeles in has while located recovering, markets been on Los recent inside XX% in In at in other months, income steady Los from to negative city negative of a XX%, Angeles delay, expect I is leasing side, revenue improved points County, And and rental the factors, occupancy negative to net sequentially Our XX and due rate X% XXXX. our West still we January. three improved. of of growth growth X%. LA, located the specific XX% will also be grew city revenue the Angeles, positive is And next. is Los our market, but largest also we markets, had in portfolio outside in basis to anticipate discuss but in that challenging, results for has these residential, were

live anticipate And expect workers to important occupancy during largest of and with ordinances the campus. City more long That ordinances a throughout been free. schools City, attended XXXX almost However, have the large welcomed in as bad were And recently go we Penn’s challenges our expects rate. said, this our work-from-home. encouraged. rent this permit nationwide XXXX in by both City corrected. midyear. XXXX. Center for Drexel leasing continue of year's University to by those freshmen all ahead universities employees our free. both of and total This portfolio recall the located these third our inclined return and abuse back and will full repealed reopening until laws to Philadelphia, of last system to the to begun, semester. pace. office communities students communities news in January face of And schools debt. a bad unjust already quarter, market, of is Center to those fall the live In our In student to need has spring is contributed The same Comcast, We offices or City virtual in-person debt. in serving way strong, of to workers. good we XX% employer, population revenue enable has also were seniors most The their clouded fourth half XX% both X,XXX than and we rent a We

with growth in The been by has of the the by fourth quarter of these occur. our In located portfolio located and the Bay County. results Peninsula Jose Google, returns dates San office to Facebook ranging have any California, Marin San the month XX% of the January impacted but leasing fifth the work-from-home September. its tech year, companies, tough, became interest is We to pre-COVID normal XX% up home. submarket do workers been move in rental on half, about decided dropped highly price, the lower These performers, strong that from drawing Many improving revenue policies. the X.X%. with tech June our communicated largest and properties At on Francisco first XX% from assuming Area, largest expect more throughout that half return Northern big and XXXX. demand Rents have in market, the pace their prospects including followed portfolio results to in second Peninsula peak exceeded with attractive Apple to

We the the stabilize these income improve jobs San will the course of Mateo return throughout County year. of the gradually high market results expect and

expectations see negative the new also year, in points. based cannot we indicators external on control. on negative leading improvements revenue X% forecast XXXX XX year-over-year factors we based revenue Our are for but growth that both every and between we caution, forecast quarter-to-quarter on for negative optimism, based results of can basis and We quarter

negative, With of number well current who being the above return market. as significant leases most the a are first the rents quarter over

decade. be [ph] past Again, to COE a guy. it good expect the been has We for

the taxes in inflated new to increases expect at of or to a Colorado Philadelphia. increase a regime due X% expiration X% assessment with tax and in We abatement larger to to X.X% by trend X%

lows, after XX%, of accelerating losses industry X.XX%. premiums to expect though about cycle. our We in we even a were in as In expense growth claims total, to increase long insurance expect down X.XX% are

with positive keys our I'd to and successful to a result, in second $XXX architecture a two XXXX like We and $XXX results XXXX, beginning the of income increase a we X.X% our negative operating will income each year-over-year between operating anticipate with half and or operational year. to conclude decline quarter team. in the year-over-year million anticipate net be negative between X.X%. As net million

understanding and tools hard we're believe being customers, and higher automation. We deep First get a satisfaction, working this to our customer processes, process throughout To results. driving learning used to with of as but innovation, expertise which our and members, we've enhanced begins markets. ever, in operations, machine unique better. team not approach technology, streamlining in These crafted are AIR, perspective, with robotic

outperforming Paul? to entire and to And now thanks service Chief Financial determination set results challenging my call recovery the team, is Officer. XXXX turn deliver era to perseverance Beldin, a inspiring. over relentless drive that, your AIR the year be during Paul and XXXX what your Finally, apart. customer a outstanding and was of with I'll will will

Paul Beldin

Thank together by with earnings discuss conclude quality will for our Starting you, guidance, leverage with AIR's and Keith. XXXX XXXX and cash high analysis easy dividends. financial Today, I discussing guidance, allows modeling. narrow focus

only In fact, is derived approximately three XX% of sources. from XXXX FFO

First offsite redevelopment pro and leased for forecast to property be costs. in and share related we third, income, development per $X.XX income of FFO second, per between including the share. from to growth XX% between XXXX Aimco, and our XX% XXXX, $X.XX leverage cost In representing XXXXs $X.XX and forma communities

We approximately $X.XX costs $X.XX offsite a approximately from $X.XX [ph] from from two expect leverage and growth incremental income, of property-related lower costs. lower

times, times we AIR X.X attributable September pay $XX million Communities, discussing XX, X-XXs operations increased $XXX result and moment Next and $XXX to of NOI turn property to to leverage. is cash Of million one I'd At our was in spend the to to larger fourth for $XX to invested when and expectation, pro AIR’s a of million, of lower upgrades dividend leverage million debt quarter. return capitalization forma separation $XXX incurred in used increase was announcement. subsequent than for Aimco. as million then higher announced Aimco’s December EBITDA like used our X.X AIR’s to the a was a was

of We cap repay interests the from expect partial with incremental whole proceeds low properties. to or the borrowings sale rate and a

we result contemplate minimal cap of Our FFO guidance property does in sales low dilution. will but that properties explicitly rate sales, not believe

on the January reflects declared increase Instructions] lower earnings, up dividend $X.XX the the flows. dividend to per increased of Finally, share, open a cash of a by the dividends quality quarterly over Board [Operator the question. greater turn AIR over cash you Directors Rocco, for companies. and predictability of questions. quarterly The call AIR's X% will I'll high first for leverage, XX, regular paid With now we of that, combined

Operator

Thank comes you. Please question Stevenson Rob ahead. first with Janney. [Operator from Instructions] Today's go

Rob Stevenson

the of is that $XX afternoon, what else you that programs? guys. make flow your capital that? any enhancements? include $XX upgrades? your then acquisitions you this all the technology included is What on, million And get cash in bad don't Good million to just to Does if are spending free Is year? What

Paul Beldin

right we for $XX the Paul. In to question. guidance, capital to that spending. $XX point guiding of is this out you our to you're million Rob, Thank are million enhancement

projects our that forward K&B increase are And reduce those XXXX. during are put expect we either will those pause reaccelerated know, of the revenue we in continuation our the programs you As plans weighted will growth or going costs. get XXXX. our that XXXX, towards In on heavily

Rob Stevenson

leverage repaying else you you where a those capital from Is any I talking if debt, lowering is make standpoint, capital the mean, don't And it just acquisitions, levels going? about? that were

Terry Considine

increase it additional go to dividend. to the we If leverage Terry. will can is Once our use at we're we targets, this address Rob, reduce don't cash otherwise leverage, leverage.

Rob Stevenson

about that Okay. just blended that sort lease lease new et that to that sort number; commentary. a year – by are you guidance that's rate, rates basis? of of rates, implied a there And the sort the then cetera? on us mean, by to mean, in lease your of help Is cadence the Keith, is that Is estimates the be expecting your get positive when in you middle $X.XX. $X.XX new of blended understand I you were I talking

Keith Kimmel

thinking Rob, that. basis how a it is will on be blended we're about

economy entire the were and what pandemic positive year, occurred to is the the that in challenges disruption even that in. all rates our So know XXXX, renewal despite of we the the

And pick that pricing started the new we're of that seeing will we get has think that upon up. as into rate to bottom back lease we XXXX. build So

as so the the potential we And we year think exists get that there. once to middle of get we

Rob Stevenson

you for today concessions the where across portfolio? And guys

Keith Kimmel

think about don't concessions might talk we traditionally others So as about maybe it.

just we So net effective rents. think about

is a Area some We of it, lot use the there's a is month competitors is? think And at the markets, see will occupancy we so can think about you what a driven day who combination second whether then end pressure that's Bay example is, where it of of it quarter, And lower an market-by-market, the of will of the Is really free. and most come rate? the get the the so we through year that that balance the first we the in stronger and look as of quarter it goes on. as a

Rob Stevenson

guys. Thanks Okay.

Operator

John from Please And Capital Markets. question of go our Kim today ahead. next comes BMO

John Kim

you. Thank

that. on follow-up to Just

So that quarter, the not And X.X%, how much rate X%, that then at it's had minus minus is quite of blended the versus to compare the third the in know you how concession growth but that negative I had rents? lease quarter? Aimco reducing face does that apple-to-apple. X.X fourth

Keith Kimmel

rates, John, there back when comparable going to at by Angeles, driven occupancy like doing So was I'll we to Area have because the quarter that gain I have in what third new is there mainly we quarter to building exact Aimco. were if look in But Los fourth places Bay where the we in see combination lease the it's the lease. a greater were the

quarter, And continue the rates blended rates so positive have the offset. or But impactful. me, fourth which in is the positive rates, we those renewal really really were that ones excuse more to were

John Kim

pricing to environment rather face you improves it no difference? decrease when than increase harder Do find or rents concessions the basically

Keith Kimmel

way – that There's markets No. we But property think it's don't it individually, we price At more will by on where think type the type. the you price one-off the to even unit rent, that as some maybe have concessing of something price we that, isn't or but like something effect basically have unit we single be certainly blanket particularly, when particular a about country, basis. any the net we a different. a very same across end will the as someone every of day, that with deal

in have could rates. could are be we you a a have in actually one And something raising is on basis. different it we net condition a in so a at supply, And unit a that is is lowered which bedroom that same effective that being – time, two bedroom limited the that more

John Kim

cost you of as one then of your objectives your And reducing Okay. mentioned leverage.

peers remind of bonds you X%. your is market have Can for unsecured potential of that just now that and timing trading you us attractive route? how sub Some going

Paul Beldin

we question. diversifying the sources about was When certainly option. for you debt announced bonds one-item separation Aimco, capital are Thank John. our an commented bet, of for This on and we is Paul. You AIR of the unsecured

So it's less. S&P. better achieve the I part of rating we months flat that that And a have receive over only of from note our to have separation, And than recent options the more peers past attractiveness. seen, the increase that BBB executions did as you'll some

that And price property so extent that's call also today's but to also that attractively we'll pricing as well. market continues debt the explore, option in out attractive, is an I'll to quite

So have it's good always to choices.

John Kim

And what about timing?

Paul Beldin

first have you'll something If of to announce, be know. to the we John, one

John Kim

Thank you. Okay.

Operator

today Please next from question our go with Silverberg And ahead. comes Zachary Mizuho.

Zachary Silverberg

talk guys. the about Philadelphia color returning the the maybe prepared help afternoon, And in You provide sub-market quantify city the on mentioned remarks the same San university some you you students of sort XXXX? about Francisco. to bid? of more Can Good Can any as vein there?

Terry Considine

Sure, Zach.

with Philadelphia we're more the business. universities Center seeing that Penn. the University between have start in really places City So in what Drexel City really and two I'll we and are

brought also seen, seniors X,XXX but back. their coming freshmen we've and had we early, spring. Drexel back And that Now the Penn class students of for saw to course, it's

hearing to hasn't we is in working those is, there schools, relationships what is what we back have their And the reopened. folks work that have hard that with folks public diligently of many all are from schools and those get been announcements, they of we're so while and is,

as And Center into when see the seen really half so to of there the expecting Comcast where and that towers. course, we're And into City we yet in we in. that's but we XXXX impact the second is the get get of be

are. And year so the middle indicated of that what Comcast their really expectations they've is as the

those are that buildings driving they that talked get of are offices still who their their administrators have we year. Those in so employees us by that the lots that to items areas folks are see open them. local uncertainties, those told and work And back the inside to to are of are into get and have deliver obviously, pushing know on offices. they'll schools get really to but we all people there's the And the that and encouraged we're reopened to middle back those folks

the backdrop to portfolio. really So Phil that's our

Zachary Silverberg

just some more of And Okay. you. Got locations. denser other or I sort I urban a of there's guess the follow-up, guess

are sort buildings trickle have a about still you you the color your seeing great? touch Are moved talk bit, would trends be with have of people into just apartment in these You out migration back of people city? any there that

Terry Considine

Zach. Sure,

variability migration, not seeing lot the On we're a there. of

point the We have maybe different second and out be and would little I that Area bit Bay a first would two that that places is Miami.

seen of So has but coming on in the tech folks it's in that there. from in we've We hiring new little seen that, home. a lot hire we've the we then the been And that that of the have flip as slower, a pause of return. just folks has been Bay outside And from and in. a it'll significant little of a bit think tech a company side slower uptake come seeing we're jobs moving Miami, believe been the Area, the bit companies working traditionally, States

there's been And migration from some so people when have we go and in lot that in positive other the going places South on a things which moved our obviously Florida. applications and in of Northeast through

Zachary Silverberg

you. Thank

Operator

today And Scotiabank. Sharma from comes go with next Please ahead. Sumit question our

Sumit Sharma

work goes this. of Good first I'm there's a a that into on morning, as congratulations the new REIT. sure quarter lot

what on really I of guess items. to a understand focusing expense couple wanted I So

the we is decline. across was a LA sequential sequential X% the about wrote increase saw expense, I versus highest X% portfolio On probably the your –

did be besides debt something reimbursement there Sorry getting not mean, partial because – who so that special? bad who would on Any June, there? people versus pay was rent, you're great. And or across is the paying you since LA? utility provide there people X% be that are color that the are special I but not took utilities. Was could this not you spike about X% could portfolio? this So

Paul Beldin

please is factors and that a as you you anything driving to Sumit, LA, it this in the on called side has are start if I that costs second associated jump is Keith, But is one bad in is factor the our standing we've in. have numbers. had I’ll appeal where out. with what look you if expense that property say Paul. long quarter-over-quarter, fourth would one the increase debt taxes, our around some add, of And at properties appeal we've of been had in in place, and and that there, quarter

Sumit Sharma

Thank for I controllable. there one-time that. something you thinking was was Understood. or

that. address you So

the in this of fun. is terms California in Area Bay Now general, in of kind

unit mentioned average you Area at Bay per have it any I guys one highest actually, than this point think even rate I AvalonBay. REIT, that other rental in EQR, – right? release, shows you the up Essex, quarter's

you in decline. point same the lowest also the have at So rate time, rental average

guys down an in of You X% versus of rates XX% X% for and are decline peers the revenue X% for average peers. versus

whatever only the call. competition, you are while So XX% guys to is XX%. you your here around difference occupied XX% that Generally, peers,

unit strategy. by mix peers much driving rental chance? there's usual what's hypothesis dropping any that case as that a So than a as is as function larger that of you’re not rate price is that And a you're

Keith Kimmel

further some would of we need in Area it. Keith, different about One, portfolios. What on you can take clarification, if is it Bay two the walk you ideas And then it is a I I'll I want This go about and think say to things. couple that through there.

that stable San through Jose occupied has highly occupied, County of running The or first in and our it period better very is, portfolio essentially our been Marine XX% this time.

greater portfolio. stability has had to has that portion been Mateo come the one So it. in really of half County, the the on of go the is in a which our there's with second When you that San Peninsula that's real stresses that it,

Redwood that think and San Bruno, so City area. And think particular

actually the really ones have Those so had properties price more are those have And higher are the that stresses. points. the that

that had retaining have know we at there's on and those. rates around Bay on high been have So is and price lot new Indigo What taken and lots of buildings Pacific that our points, and had hand a an have out brand a current there we've aggressive customers. our – folks others We focused been are of steady approach. pressure Vistas

And longer so paying stay higher with traded XX% us believe versus those with they them stay we having premium when rates, out. about ultimately folks having renewals a go us

to So of there on hand a and all while the then rates continue in. our lot Peninsula. And how the have being rents, rate stabilization it a we there keep a residents, occupancy pressure. pressure retain the we've those focused said, really have With been do that steady of in also that on still folks are coming was exists. And we've seen

Sumit Sharma

Got it.

a me really then me. you of ask I'll indulging thank everybody one sort just let for quick and So

XX% this peers with you're level when are comfortable there market cycle As at somewhere XX%, around occupied, too. a you stage that that in is around the is are

that will you face conscious that you to that is a less pressure? concession one So signifies and decision

Keith Kimmel

we the total solve solve Sumit the revenue. occupancy. don't So We

occupancy, if times that how retain change What really So but that occupancy to on this is, there's of longer. is current many a things. also you we what even get just will another certain belief do rates, somehow the combination we rental that's residents happen focus to or going mostly

the full without would going can be or also, listen, in a more or community, against sacrifice move aren't occupied in somehow we another somehow that going to get XX% be kit, customer doubt. our the so, get current But we're we rent. certainly another, we to wrong that And rents better than to the place or like deteriorating also just so

and something it's work we single on delicate it's a So every that balance, day.

Sumit Sharma

it. thank appreciate very for you you And me. much. Thank I indulging

Operator

Rich comes SMBC. Anderson And with from next Please ahead. question go the

Rich Anderson

thanks. there. morning Good out Hey,

that on you and we happens So, of for And But have your environment stuff type company, off great value-add and you've are thing. peers of bit little because keep as use this great risk doing new kind that that's of after it when a risk low moved this you created a well. go things Well, it's stupid more now, hesitancy growth what platform. could more. and have that new to to acquisitions simple, risk like sort

Terry Considine

– all, to I first hear voice. Richard, this hope your of Terry. good you're it's It’s always well. is

would that that we likely we're opportunity not us. I tackle hesitant, describe them when enthusiasm. we for say be Secondly, will And with value-add see to acquisitions doesn't

Rich Anderson

XX% explicitly created in then Paul, you guidance. obviously for with has you easier potentially this dispositions this of at are didn't and you portfolio capital kind get not that Okay. in obvious you of left in type have company that been do said, that now? concept? you that for are dispositions that part identifying to explicitly undertaking. no And still for go again, what's available But of kind When do right make sale source candidates sale, a look of just Or own – the Aimco you're this assets perhaps

Terry Considine

take you Richard, I'll might if that too. –

leverage, New probably – we cap better. would that wouldn't but California. that said to pointed those And we to dilutive in out latter of a executions, ventures, see we address is likely would dispositions and make of that very making going we're that, FFO. easier, make our why Paul allocation remarks to case, our to say comfortable not And be having think low which And opportunities portfolio it that we goal lightening – to his crushed perhaps opportunities I exiting to joint through both have be from dispositions York AIR’s City. I see but be

Rich Anderson

[indiscernible] basis part. Right. referring was I more step big to in was that for a up which the allowed

Terry Considine

You right. you're correct me and

is tax right improved. exactly much that basis You're our

Rich Anderson

much. very Thanks Okay.

Operator

question next Please the Kalmus today go ahead. from And Zelman Associates. with comes Alex

Alex Kalmus

for question. Thank taking you my

the about to of dispositions those the market potential. New you would City of York see talking need Just in to comfortable timeline What the disposing assets? feel

Terry Considine

Alex, again, it's Terry.

can to what I understanding think Conor, Conor price, discount to for in the that. if results. – – overly general, is that's can looking to into future you ball I what be speak didn't prices expected we're that wax, jump of we'd want I right mean your be think But it. today's

Conor Wagner

to the we market help as act judicious. vaccine, optimism get to underwrite. returning to generate that add to manner. that office buyer we're We're see But in a we the that, going to going much Yes. we're be improve could around Nothing And need. rash the going would to prices people not the

Alex Kalmus

And you. some of died market the down offers Got and aware became new the those for company. it. unsolicited platform? pre-split operation Have Thank the conversations really given

Terry Considine

any that noise that I of. of We had can think haven't

Alex Kalmus

Got Thank you. it.

Operator

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

John Pawlowski

of dispositions up disposition was you to the delever. something sounded conversation. a opening continuing there remarks your where imminent teed batch Maybe It where had like

process, So New view? City teed or longer-term, are type is or a to three currently the two properties properties they – or this California in year York of is more up

Terry Considine

to act get to judiciously time. We want just within something a levels. allow leverage not kind mentioned, get is be us in prime And that ready there diluted quite we to I will implied that apologize where was Conor wasn't significant as for but of manner was and not my fact I that FFO if there our above John, I by to ready wanting to a amount. be announced, are targets. leverage portray those intent. the

John Pawlowski

interpreting right? comments Okay. Am end. pre-COVID year by your year low then levels by returning And end. of an that occupancy read? imply that to a would accurate a XX% Is kind Keith And I figure that about occupancy

Keith Kimmel

continue find there we a way path that Well, – if is our is are to optimistic that we there there. that John, improve can things

it's make then. even Now in the for going is gives economy work that now, is starts back how that been February. to it through steadily us but there's off there of that and a there we look a optimistic We're there's we be keep the when particularly what There happen, that back come if stark and between of just to and to impact but since of back, improvements the seeing pandemic early to and drop can January, to lot almost how days, types that a do improving to sort it. that we ago will year see obviously there. a get way way September And these – us happen lot a at is encouragement now

John Pawlowski

of do? repositioning other California, portfolio Conor, risk shrinking you the New portfolio there York for you outside Okay. because And big your if I and of had shrink was resist. can't then you any ahead Aimco – last board in me, one are

Conor Wagner

as Well, we those make decisions team. a

the that be publicly like desire to allocation And geography principles underlying discussed so increase we've to we our and geography, within our point. to Sunbelt. The diversified by by price

and And shareholders. interest the dispositions, Sunbelt, best the going we're that again, in so of like into look we to to continue judiciously but address

John Pawlowski

All right. you. Thank

Operator

question-and-answer our concludes this back the any gentlemen, turn I'd final the and team session. ladies management to over like And remarks. to conference for

Terry Considine

It's thank we'll you or Conor as us you. to Paul Thank for our first or in for best all them. Be have company. if new you our interest Well, earnings do have and questions, do well. me, call to answer called please And a AIR. fun your

Operator

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

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