Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What does concession usage look like across the portfolio? Is concession usage picking up in April versus 1Q 24?
A: Matthew McGraner, Executive Vice President, Chief Investment Officer, Company Secretary, noted that concession usage typically picks up in the second and third quarters and then wanes in the fourth. He mentioned that the use of concessions has begun to dissipate, and while they are still underwriting the need for concessions, they are optimistic about reducing their use.
Q: How far are you guys to the various upgrade opportunities within the portfolio?
A: Matthew McGraner explained that they are essentially done with technology package upgrades, having completed over 12,000. He highlighted ongoing opportunities with washer and dryer installations and bespoke upgrades, estimating about 1.5 to 2 years of internal growth potential left as they manage supply dynamics.
Q: Can you discuss the guidance for same-store NOI, which shows a full-year projection of between -2% to 2%, despite a strong first quarter?
A: Matthew McGraner clarified that the guidance accounts for potential challenges such as lease gains and general property performance amidst increasing supply. The wide guidance range is maintained to provide flexibility until they have a clearer view of the market post-spring leasing season.
Q: Regarding the interest swaps expiring this year, how are you planning to manage this, considering many are currently beneficial to your costs?
A: Matthew McGraner indicated they are monitoring interest rates closely and are hesitant to add more swaps at peak rates. He emphasized the company's ability to maintain current FFO levels through moderate same-store NOI growth, even as these swaps expire.
Q: What drove the significant decrease in the interest expense line item this quarter?
A: Bonner McDermett, Vice President, Asset and Investment Management, attributed the decrease primarily to non-cash mark-to-market adjustments on their interest swaps, influenced by changes in the forward interest rate curve.
Q: Are share buybacks being prioritized over acquisitions currently?
A: Matthew McGraner confirmed that share buybacks are currently prioritized due to the significant gap between public and private market valuations. He noted the lack of attractive market transactions as a factor in this decision.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
