Apartment Income REIT Corp (AIRC) 2023 Q1 法說會逐字稿

Welcome, and thank you for attending today's AIR Communities First Quarter 2023 Earnings Conference Call. My name is Sierra, and I will be your moderator for today's call. (Operator Instructions)

歡迎並感謝您參加今天的 AIR Communities 2023 年第一季度收益電話會議。我叫 Sierra，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to Lisa Cohn, President and General Counsel of AIR Communities. You may proceed.

我現在想將會議轉交給 AIR Communities 總裁兼總法律顧問 Lisa Cohn。你可以繼續。

Thank you, Sierra, and good day. My name is Lisa Cohn, and I am President and General Counsel of AIR Communities.

謝謝你，Sierra，祝你有美好的一天。我叫 Lisa Cohn，是 AIR Communities 的總裁兼總法律顧問。

During this conference call, the forward-looking statements we make are based on management's judgment of current market conditions, macroeconomic trends, socioeconomic drivers and other factors, including projections related to our 2023 performance expectations. These statements are subject to certain risks and uncertainties, a description of which can be found in our SEC filings. Actual results may differ materially from what may be discussed today.

在本次電話會議中，我們做出的前瞻性陳述是基於管理層對當前市場狀況、宏觀經濟趨勢、社會經濟驅動因素和其他因素的判斷，包括與我們 2023 年業績預期相關的預測。這些聲明受某些風險和不確定因素的影響，其描述可在我們向美國證券交易委員會提交的文件中找到。實際結果可能與今天討論的內容大不相同。

We will also discuss certain non-GAAP financial measures such as FFO. These are defined and are reconciled to those comparable GAAP measures in the supplemental information that is part of the full earnings release published on AIR's website.

我們還將討論某些非 GAAP 財務指標，例如 FFO。這些在作為 AIR 網站上發布的完整收益發布的一部分的補充信息中定義並與那些可比的 GAAP 措施相協調。

Prepared remarks today come from Terry Considine, our CEO; Keith Kimmel, President of Property Operations; John McGrath, Chairman of our Investment Committee; and Paul Beldin, our Chief Financial Officer. Other members of management are also present. All of us will be available during the question-and-answer session, which will follow our prepared remarks.

今天準備好的發言來自我們的首席執行官 Terry Considine；物業運營總裁 Keith Kimmel； John McGrath，我們的投資委員會主席；和我們的首席財務官 Paul Beldin。其他管理層成員也出席了會議。我們所有人都將在問答環節期間到場，這將遵循我們準備好的發言。

I will now turn the call to Terry Considine. Terry?

我現在將電話轉給 Terry Considine。特里？

Thank you, Lisa, and my thanks to each of you on this call for your interest in AIR Communities. My comments will be brief. AIR's first quarter results were on track with our plans. AIR operations led all peers with the lowest expense growth, the highest margins, the most year-over-year growth in net operating income, the highest rental rate increases and the highest rate of conversion of top line revenue to bottom line free cash flow measured after all corporate expenses.

謝謝你，麗莎，我感謝你們每一位在這次電話會議上對 AIR Communities 的興趣。我的評論將是簡短的。 AIR 第一季度的業績符合我們的計劃。 AIR 業務以最低的費用增長、最高的利潤率、最高的淨營業收入同比增長、最高的租金增長率和最高的最高收入轉化為最低自由現金流的衡量指標領先於所有同行在所有公司費用之後。

AIR is consistently the most efficient and effective way to invest in multifamily with public market liquidity. AIR culture emphasizes teamwork and Keith leads the veteran team, who know the AIR Edge playbook, lead stable site teams are committed to continuous improvement and who consistently raise AIR as the best place to work.

AIR 始終是投資具有公開市場流動性的多戶住宅的最有效方式。 AIR 文化強調團隊合作，Keith 領導著經驗豐富的團隊，他了解 AIR Edge 劇本，領導穩定的站點團隊致力於持續改進，並始終將 AIR 提升為最佳工作場所。

Two important explanation of AIR's low controllable expenses are the high productivity of AIR service managers and their long tenure. AIR values technological efficiency gives a higher priority to a sense of mission and a commitment to the personal respect and relationship that buying together teams and customers. Taken together, the results is sector-leading customer satisfaction, sector-leading customer retention, 62% in the last 12 months and sector low rate of growth in operating costs.

AIR 的低可控費用的兩個重要解釋是 AIR 服務經理的高生產力和他們的長期任期。 AIR 重視技術效率，更重視使命感和對個人尊重的承諾，以及與團隊和客戶一起購買的關係。綜合來看，結果是行業領先的客戶滿意度、行業領先的客戶保留率、過去 12 個月的 62% 以及運營成本的行業低增長率。

In a moment, John will comment on the quality of the AIR portfolio in the top 3 of apartment REITs when measured by average rents and #1 in rent growth. Paul will follow to comment on the safety of the AIR balance sheet. No refunding required for 2 years, little repricing risk, almost $2 billion of liquidity, enough to refund all maturities until 2030.

稍後，約翰將以平均租金和租金增長排名第一的標準衡量 AIR 投資組合在公寓房地產投資信託基金前三名中的質量。 Paul 將隨後對 AIR 資產負債表的安全性發表評論。 2 年內無需退款，重新定價風險很小，近 20 億美元的流動性，足以償還 2030 年之前的所有到期債券。

Looking ahead to this quarter and to the rest of 2023, shareholders should expect more of the same. Solid execution grounded in a strong culture, aggressive portfolio management, a safe balance sheet. But thanks to the entire AIR team, including my helpful and engaged colleagues on the AIR board.

展望本季度和 2023 年剩餘時間，股東應該期待更多相同的情況。堅實的執行力基於強大的文化、積極的投資組合管理和安全的資產負債表。但要感謝整個 AIR 團隊，包括我在 AIR 董事會中樂於助人和敬業的同事。

I'll turn the call to Keith, Head of AIR Ops, Keith?

我會把電話轉給空中行動負責人基思，基思？

Thanks, Terry. The first quarter was a good quarter and on plan. Results like these are a team effort. Our success in ops owes much to John, who has led the charge to transform our portfolio over the past 2 years, placing us in the right markets and with communities that residents find appealing. We also owe much to Paul and his disciplined approach during the pandemic accounting for past due rent. It puts us in a good position now that restrictions on rent collections are winding down.

謝謝，特里。第一季度是一個不錯的季度，並且按計劃進行。像這樣的結果是團隊的努力。我們在運營方面的成功在很大程度上要歸功於 John，他在過去 2 年中帶頭改變了我們的投資組合，使我們進入了正確的市場和居民認為有吸引力的社區。我們也非常感謝保羅和他在大流行期間對逾期租金的紀律處分。現在對收租的限制正在逐漸減少，這使我們處於有利地位。

AIR gets 2 benefits from Paul's approach. First, we do not have to make provisions today for rent not received 2 and 3 years ago. In fact, we have upsides when previously reserved rents is collected. Second, as nonpaying residents move out of their apartments, we are able to re-rent those apartments and to add positive income.

AIR 從 Paul 的方法中獲得了兩個好處。首先，我們今天不必為 2 年和 3 年前未收到的租金做出準備。事實上，當收取之前預留的租金時，我們有好處。其次，隨著非付費居民搬出他們的公寓，我們能夠重新出租這些公寓並增加正收入。

The number of residents 2 or more months delinquent in normal times is quite low. It ballooned during the government restrictions during the pandemic and now is steadily decreasing from 1,000 to to begin 2022 to 250 in January to 130 today. And when these residents moved out, we re-rented to customers, who are now paying rent and doing so with leases that are actually 10% higher than the previous resident.

平時拖欠2個月或以上的居民人數相當少。它在大流行期間的政府限制期間激增，現在正在穩步下降，從 1,000 到 2022 年初，從 1 月份的 250 下降到今天的 130。當這些居民搬出時，我們重新出租給客戶，他們現在正在支付租金，而且租金實際上比以前的居民高 10%。

Most impactful is the operations team. We worked hard to develop a business playbook, what we call the AIR Edge, and our first quarter performance is further evidence that our platform is impactful and leads to a different result. The AIR Edge is a combination of process, technology, analytics and most importantly, people. We begin with an approach too, to attract high-quality residents that want to stay with us long term. This is the core of creating a community where relationships matter and make our residents stickier.

最具影響力的是運營團隊。我們努力開發了一本商業手冊，我們稱之為 AIR Edge，我們第一季度的業績進一步證明了我們的平台具有影響力並帶來了不同的結果。 AIR Edge 是流程、技術、分析以及最重要的人員的結合。我們也從一種方法開始，以吸引想要長期留在我們身邊的優質居民。這是創建一個關係很重要並使我們的居民更具粘性的社區的核心。

We're diligently provide world-class customer service with our resident scoring us 4.3 out of 5 on 10,000 surveys during the first quarter. That customer service is made possible by our on-site teams, who are committed to not only maintaining our properties, but building the sense of community and taking care of residents. As a result, our residents stay put, leading to our retention of 61.9% over the past year or a turnover of just 38.1%.

我們努力提供世界一流的客戶服務，我們的居民在第一季度的 10,000 項調查中給我們打了 4.3 分（滿分 5 分）。我們的現場團隊使客戶服務成為可能，他們不僅致力於維護我們的物業，還致力於建立社區意識和照顧居民。因此，我們的居民留在原地，導致我們在過去一年中保留了 61.9% 或僅 38.1% 的營業額。

To put that in context, we had 110 fewer move-outs in the first quarter compared with 2022. That lower turnover is one of the key drivers of AIR's decade-long decreases in personnel, marketing and turnover costs. Fewer units to lease drives higher pricing power. So too does the stable community created by friends and neighbors when turnover is so low. Not only that, our experienced and motivated leasing team supports applicants throughout the process, matching their needs with available product and selling the value of the community, not just the commodity. This isn't just a philosophical stance. It translates into results.

綜上所述，與 2022 年相比，我們第一季度的搬出人數減少了 110 人。較低的人員流動率是 AIR 十年來人員、營銷和人員流動成本下降的關鍵驅動因素之一。更少的租賃單位推動了更高的定價權。在營業額如此低的情況下，朋友和鄰居創建的穩定社區也是如此。不僅如此，我們經驗豐富且積極進取的租賃團隊在整個過程中為申請人提供支持，將他們的需求與可用產品相匹配，並銷售社區的價值，而不僅僅是商品。這不僅僅是一種哲學立場。它轉化為結果。

Let me walk you through our first quarter. Rate growth remained robust with signed new leases up 8.7%, renewals up 8.4% and blended average lease rate growth of 8.6%. Occupancy was strong at 97.5% for the quarter, which translated into revenue growth up 10.1% from the prior year. Controllable operating expenses were down 20 basis points due to the lower turnover I mentioned, which allows us to be more efficient in our staffing and marketing efforts.

讓我帶您了解我們的第一季度。租金增長保持強勁，新簽租約增長 8.7%，續租增長 8.4%，混合平均租賃率增長 8.6%。本季度的入住率高達 97.5%，收入同比增長 10.1%。由於我提到的較低的營業額，可控運營費用下降了 20 個基點，這使我們能夠更有效地進行人員配置和營銷工作。

Total expenses were up 3.3%. And as a result, net operating income growth was 12.7%. This culminated in a peer-leading net operating margin of 73.9% an increase of 170 basis point from last year. Adding to AIR Edge to acquisition is a predictable engine that drives above market growth as demonstrated by our first quarter results. Our class of 2021 in Washington, D.C. and Fort Lauderdale now in the same-store portfolio and revenue growth 50% higher than the rest of our same-store communities, contributing 60 basis points to same-store growth. Controllable operating expenses at these acquisition communities were down 10% year-over-year. The efficiencies inherent in the AIR platform continue to earn in.

總支出增長了 3.3%。結果，淨營業收入增長了 12.7%。這最終導致同行領先的淨營業利潤率為 73.9%，比去年增加了 170 個基點。正如我們第一季度的業績所證明的那樣，將 AIR Edge 添加到收購中是一個可預測的引擎，可以推動高於市場的增長。我們在華盛頓特區和勞德代爾堡的 2021 年級學生現在的同店投資組合和收入增長比我們其他同店社區高 50%，為同店增長貢獻了 60 個基點。這些收購社區的可控運營費用同比下降 10%。 AIR 平台固有的效率繼續發揮作用。

Our class of 2022 is on track with the stabilized performance after the AIR Edge implementation expected to be similar with revenue growth roughly 50% above same-store with decreases in COE. In our 2023 acquisition of Southgate in Miami Beach is in the very early days, but is on a similar trajectory. April is on trend in our plan, bringing the typical spring acceleration in the expected seasonal frictional vacancy. Rates continue to be strong with signed leases up lease rates up 8.1% above the prior lease, renewals up 7.8% and blended average lease rates up 8%.

我們 2022 年的班級在實施 AIR Edge 後有望實現穩定的表現，預計收入增長將比同店高出約 50%，COE 下降。我們在 2023 年收購邁阿密海灘的 Southgate 還處於早期階段，但處於類似的軌道上。 4 月是我們計劃中的趨勢，在預期的季節性摩擦空缺中帶來了典型的春季加速。租金繼續保持強勁，已簽署的租約租金比之前的租約高出 8.1%，續租率高出 7.8%，混合平均租賃率高出 8%。

Looking forward at rates, we see blends in the range of 8% throughout the second quarter. Leasing is accelerating in line with seasonal expectations, with April ending 45% up from March volume. And as expected, average daily occupancy has declined sequentially to 96.4% and as we are beginning to see the planned churn of move-outs associated with peak season expirations.

展望利率，我們認為整個第二季度的混合利率在 8% 的範圍內。租賃正在加速增長，符合季節性預期，4 月份的成交量比 3 月份增長了 45%。正如預期的那樣，平均每日入住率連續下降至 96.4%，並且我們開始看到與旺季到期相關的計劃搬遷。

We anticipate an occupancy rebound during the third quarter, similar to our performance in years past. It remains early days we're roughly 1/3 through our leasing for the year. And even so, everything I see gives me confidence. The demand is strong. Rates are solid. Our customer service remains world-class, turnover is low, residents are paying rent and AIR Edge will continue to drive above trend results for the balance of 2023.

我們預計第三季度的入住率將出現反彈，這與我們過去幾年的表現類似。現在還很早，我們今年的租賃時間大約是 1/3。即便如此，我所看到的一切都給了我信心。需求強勁。價格穩定。我們的客戶服務仍然是世界一流的，營業額很低，居民正在支付租金，AIR Edge 將在 2023 年剩餘時間內繼續取得高於趨勢的結果。

My thanks to all the AIR team members for a great start to the year. Their consistent energy each and every day inspires me and look forward to a successful peak season with you.

我要感謝 AIR 團隊的所有成員，讓他們在今年有了一個良好的開端。他們每天始終如一的活力激勵著我，並期待著與您一起度過一個成功的旺季。

And with that, I'll now turn the call over to John McGrath, the Chairman of our Investment Committee. John?

有了這個，我現在將把電話轉給我們投資委員會主席約翰麥格拉思。約翰？

Thank you, Keith. We remain focused on repositioning the AIR portfolio through disciplined portfolio management and accretive capital allocation. Keith and his team's extraordinary work has made AIR to just operate on the multifamily REITs. This, coupled with an improved capital allocation, including diversification by market and price point, has enabled us to take a portfolio that was already quite good and make it even better.

謝謝你，基思。我們仍然專注於通過嚴格的投資組合管理和增值資本配置來重新定位 AIR 投資組合。 Keith 和他的團隊的非凡工作使 AIR 僅在多戶房地產投資信託基金上運營。這一點，再加上資本配置的改善，包括市場和價格點的多元化，使我們能夠將已經相當不錯的投資組合變得更好。

Our improved portfolio quality is evident in average rents, where we ranked #3 among our peers and in rental growth rate where we rank #1. And that's in our same-store portfolio. Our acquisition portfolio is growing even faster, thanks to Keith's team and the AIR Edge. While we are proud of the results, there is still work to do.

我們提高的投資組合質量在平均租金方面很明顯，我們在同行中排名第三，在租金增長率方面我們排名第一。那是在我們的同店產品組合中。由於 Keith 的團隊和 AIR Edge，我們的收購組合增長得更快。雖然我們為結果感到自豪，但仍有工作要做。

Looking ahead, I expect business as usual. Keith will focus on operational excellence, and I will work to improve portfolio quality by recycling capital into well-located, high-quality properties that will benefit from the AIR Edge sufficiently to generate enhanced returns with limited business risk and no increase in financial leverage.

展望未來，我希望一切如常。 Keith 將專注於卓越運營，而我將努力通過將資本回收到位置優越的優質物業來提高投資組合質量，這些物業將充分受益於 AIR Edge，從而在有限的業務風險和不增加財務槓桿的情況下產生更高的回報。

Although we have no fixed goal for additional acquisitions in 2023, Josh and I are busy discussing possible transactions. I am confident in our ability to source and execute trades, which will continue to improve the quality of the AIR portfolio and whose returns will be highly accretive to our cost of capital.

儘管我們沒有在 2023 年進行額外收購的固定目標，但我和喬什正忙於討論可能的交易。我對我們採購和執行交易的能力充滿信心，這將繼續提高 AIR 投資組合的質量，其回報將大大增加我們的資本成本。

With that, I'll turn the call over to Paul Beldin, our Chief Financial Officer.

有了這個，我將把電話轉給我們的首席財務官 Paul Beldin。

Thank you, John. Today, I will discuss our high-quality balance sheet, report first quarter results and our expectations for the full year and conclude with the brief comment on our dividend. The AIR balance sheet is well positioned for the uncertainties of today's capital markets.

謝謝你，約翰。今天，我將討論我們高質量的資產負債表，報告第一季度業績和我們對全年的預期，並以對我們的股息的簡短評論作為結尾。 AIR 資產負債表很好地適應了當今資本市場的不確定性。

I'd like to spend a moment today addressing its liquidity, repayment risk, interest rate risk and leverage relative to EBITDA. First, AIR available liquidity is approximately $1.8 billion. Adjusting for size, this is about 3x the peer average. To put this in context, current committed sources are sufficient to repay all of our debt that comes due for the next 6 years.

今天我想花點時間談談它的流動性、還款風險、利率風險和相對於 EBITDA 的槓桿作用。首先，AIR 的可用流動資金約為 18 億美元。調整規模後，這大約是同行平均水平的 3 倍。綜上所述，當前承諾的資源足以償還我們未來 6 年到期的所有債務。

In April, we established a secured credit facility to complement our existing revolving credit facility. The new facility currently provides for up to $1 billion of committed financing on an as-needed basis for the next 10 years. Properties can be added and removed from the structure quickly and with minimal costs. The pricing is based on a Fannie Mae grid, which today is lower than bond financing by 50 to 75 basis points, while we have no current plans to access the new secured facility that provides inexpensive insurance.

4 月，我們建立了擔保信貸額度以補充我們現有的循環信貸額度。新設施目前根據需要為未來 10 年提供高達 10 億美元的承諾融資。可以以最少的成本快速地在結構中添加和刪除屬性。定價基於 Fannie Mae 網格，目前比債券融資低 50 至 75 個基點，而我們目前沒有計劃使用提供廉價保險的新擔保設施。

Second, AIR has no debt maturities for the next 24 months. And as noted previously, we have committed financing available at our option sufficient to refinance all debt maturing before 2030.

其次，AIR 在接下來的 24 個月內沒有到期的債務。如前所述，我們已承諾提供可供選擇的融資，足以為 2030 年之前到期的所有債務再融資。

Third, interest rate risk is limited to our floating rate debt, which approximates 4% of net leverage, a 1% change in rates would affect earnings by less than $0.01 per share per year.

第三，利率風險僅限於我們的浮動利率債務，大約為淨槓桿的 4%，利率變化 1% 對收益的影響每年每股收益不到 0.01 美元。

Fourth, our leverage is elevated today by the acquisition of Southgate Towers in January. We expect that the amount borrowed will be reduced with proceeds from property sales and that EBITDA will increase from the earn-in of existing leases, plus new and renewal leasing that captures our current 4.5% loss to lease. We expect to finish the AIR with leverage to EBITDA of 5.9 to 1.

第四，由於 1 月份收購了 Southgate Towers，我們今天的槓桿率有所提高。我們預計借入的金額將隨著物業銷售收益而減少，EBITDA 將從現有租賃的收益中增加，加上新的和續約的租賃，這將彌補我們目前 4.5% 的租賃損失。我們預計以 5.9 比 1 的 EBITDA 槓桿率完成 AIR。

Turning to first quarter results. First quarter FFO was $0.55 per share, equal to the midpoint of guidance. The same-store NOI growth slightly exceeded our expectations, but is recurring positive was offset by the nonrecurring negative of higher-than-anticipated casualty losses. Looking forward, we anticipate second quarter FFO between $0.55 and $0.59 per share driven by sequential NOI growth in our same-store and acquisition portfolios, and we anticipate second half FFO at the midpoint of $1.29 per share, a $0.17 acceleration from what we expect in the first half.

轉向第一季度業績。第一季度 FFO 為每股 0.55 美元，等於指導的中點。同店 NOI 增長略高於我們的預期，但經常性正數被高於預期的傷亡損失的非經常性負數所抵消。展望未來，我們預計第二季度 FFO 將在每股 0.55 美元至 0.59 美元之間，這將受到我們同店和收購組合的連續 NOI 增長的推動，我們預計下半年 FFO 將達到每股 1.29 美元的中點，比我們預期的 0.17 美元加速上半場。

We anticipate that roughly 2/3 or approximately $0.11 will come from the earn-in of space rent roll in the same-store and acquisition portfolios. Another $0.03 or so is likely to be achieved through future leasing at today's loss to lease. The remaining $0.03 may be achieved through a variety of sources, including future market rent growth at levels consistent with typical peak season results and/or lower outside costs, collection reserve past-due rent for the successful resolution to a long-running real estate tax appeal at Lincoln Place.

我們預計大約 2/3 或大約 0.11 美元將來自同店和收購組合中的空間租金收入。在今天的租賃損失下，通過未來租賃可能會再賺取 0.03 美元左右。剩餘的 0.03 美元可以通過多種來源實現，包括未來市場租金增長與典型旺季結果一致的水平和/或較低的外部成本，為成功解決長期房地產稅而徵收的逾期租金儲備在林肯廣場上訴。

Last, the AIR Board of Directors declared a quarterly cash dividend of $0.45 per share. On an annualized basis, the dividend reflects a yield of over 5% based on the current share price. Additionally, the tax-efficient nature of AIR's dividend allows taxable investors to receive 14% present more dividend as compared to peer average.

最後，AIR 董事會宣布派發每股 0.45 美元的季度現金股息。按年率計算，股息反映了基於當前股價的超過 5% 的收益率。此外，AIR 股息的節稅性質使應稅投資者能夠獲得比同行平均水平高出 14% 的股息。

With that, we will now open the call for questions, letting your questions for 2 per time in the queue. Sierra, I'll turn it over to you for the first question.

有了這個，我們現在將打開問題徵集，讓您的問題在隊列中每次 2 個。 Sierra，第一個問題我會交給你。

(Operator Instructions) Our first question today comes from Eric Wolfe with Citi.

（操作員說明）我們今天的第一個問題來自花旗銀行的 Eric Wolfe。

First question is just on market rent growth. Just curious how it's grown so far this year, whether it's in line with your expectations? And what do you still think that they're released in guidance that there's not going to be any market rent growth for the year?

第一個問題只是關於市場租金增長。只是好奇今年發展到現在，是否符合你的預期？你仍然認為他們是在指導下發布的，即今年市場租金不會增長？

Eric, it's Keith. I would say that as we've started out the year, it's been -- we've seen a little bit of market rent growth, about 2% that has been built in so far. Now of course, we're only 1/3 -- a little over 1/3 of the way into it. But what I would tell you that we're seeing is that our blends at 8% in April, we think can continue through the balance of the second quarter. But to be clear, we have a lot of the leasing activity that really has to happen in June, July and August. And so I wouldn't get ahead of ourselves, but we're seeing some good indicators.

埃里克，我是基思。我想說的是，從今年開始，我們已經看到市場租金略有增長，到目前為止已經增加了約 2%。當然，現在我們只完成了 1/3——略高於 1/3。但我要告訴你的是，我們看到的是我們 4 月份的混合率為 8%，我們認為可以持續到第二季度的剩餘時間。但需要明確的是，我們有很多租賃活動確實必須在 6 月、7 月和 8 月進行。所以我不會超越自己，但我們看到了一些很好的指標。

Understood. And then your release highlighted the upside from implementing your system on new acquisitions. But just curious for Southgate Towers specifically, could you just help us understand what kind of NOI upside you see there, where it's coming from? When do you think you'll achieve it?

明白了。然後你的發布強調了在新收購上實施你的系統的好處。但只是對 Southgate Towers 特別感興趣，您能否幫助我們了解您在那裡看到什麼樣的 NOI 優勢，它來自哪裡？你認為你什麼時候會實現它？

Eric, can you repeat the question came in a little bit -- it was hard to hear.

埃里克，你能再重複一下這個問題嗎——很難聽到。

Understood. Yes. I said that your release did a good job highlighting the upside from implementing your system. So I was just curious for Southgate Towers specifically, whether you would expect a sort of similar 20% increase in NOI and sort of where that's coming from?

明白了。是的。我說你的發布很好地突出了實施你的系統的好處。所以我只是對 Southgate Towers 特別好奇，您是否會期望 NOI 有類似的 20% 增長，以及它從何而來？

Eric, this is John. On Southgate, when we underwrote the opportunity, we were looking at the fact that we had a wonderful acquisition that we had the ability to implement the AIR Edge specifically looking at opportunities to capture the loss of lease, reduced cost due to Keith's operating platform and performance. And we're seeing that, although early days, we're seeing it actually coming to fruition today. .

埃里克，這是約翰。在 Southgate，當我們承保這個機會時，我們正在考慮這樣一個事實，即我們有一個很好的收購，我們有能力實施 AIR Edge，特別是尋找機會來捕捉租賃損失、由於 Keith 的運營平台而降低的成本和表現。我們看到了這一點，雖然還處於早期階段，但我們今天看到它實際上正在實現。 .

I'll pass it over to Keith to give more specifics, but that's how we underwrote it at the beginning.

我會將其轉交給 Keith 以提供更多細節，但這就是我們一開始就承保的方式。

So Eric, when we first took a look at Southgate, one of the things we went looked at, we saw that we believe there was about a 30% loss-to-lease opportunity. Now of course, that has to become realized and takes a couple of cycles to actually work its way through. But it was one of the greatest upsides that we saw in taking that one over.

所以埃里克，當我們第一次看 Southgate 時，我們看過的其中一件事，我們看到我們相信有大約 30% 的租賃損失機會。當然，現在必須實現這一點，並且需要幾個週期才能真正完成。但這是我們在接管那個人時看到的最大好處之一。

Our next question comes from Haendel St. Juste with Mizuho.

我們的下一個問題來自瑞穗的 Haendel St. Juste。

First question is on the new $1 billion secured credit line. I was hoping you guys could expand a bit on the decision to pursue a secured line here? What's the pricing? Why secured? Why now? And beyond the incremental liquidity, are there any other messages that we should be taking away from this decision?

第一個問題是關於新的 10 億美元擔保信貸額度。我希望你們能詳細說明在這裡尋求安全線路的決定？定價是多少？為什麼有保障？為什麼現在？除了增量流動性之外，我們還應該從這個決定中汲取任何其他信息嗎？

Well, let's take them in reverse order. There's no particular message except that the world is unpredictable and the -- there are various extreme possibilities inside the current economy. And it's good to have ready cash. And so we want to be sure that we've got lots of liquidity, and Paul has done a great job in arranging this facility, which is very low cost, very long term and gives us lots of optionality.

好吧，讓我們把它們倒過來。沒有什麼特別的信息，只是世界是不可預測的，而且——當前經濟中存在各種極端的可能性。有現成的現金是件好事。因此，我們希望確保我們有大量的流動性，而且保羅在安排這個設施方面做得很好，它成本非常低，非常長期並且給了我們很多選擇權。

Can you share the term and the pricing? I didn't notice the pricing in the new release?

你能分享期限和定價嗎？我沒有註意到新版本中的定價？

Yes, Haendel, this is Paul. So the facility has a duration of up to 15 years where new loans can be originated during the first 10 years. So you can think of that as a 10-year facility. And then pricing for the loans will be based upon market at the time alone is desired. So at the point -- at today's rates, that would be probably around the 5%, 5.1% level. But today, we don't have a need or an intent to access the facility. So as I mentioned in my remarks, is viewed from our perspective as insurance because, as Terry said, the future is uncertain.

是的，亨德爾，這是保羅。因此，該設施的期限最長為 15 年，可以在前 10 年內發放新貸款。所以你可以把它想像成一個 10 年的設施。然後貸款的定價將基於市場在需要的時候。所以在這一點上——按照今天的利率，這可能在 5%、5.1% 左右。但是今天，我們沒有必要也沒有意圖訪問該設施。因此，正如我在發言中提到的，從我們的角度來看，這被視為一種保險，因為正如特里所說，未來是不確定的。

Great. Keith, a quick one for you. Maybe you could touch a little bit on the deceleration of renewals in the quarter. Is that an intentional decision on your part perhaps to moderate turnover? Or are you sensing any pushback here? Curious on the again, the renewal trend in the quarter fixed?

偉大的。基思，給你一個快速的。也許您可以稍微談談本季度續訂的減速。這是您有意做出的決定，也許是為了減少營業額？還是您感覺到這裡有任何阻力？再次好奇，本季度的更新趨勢固定了嗎？

Haendel, thanks for the question. No, absolutely not. It's really just what becomes the take rate. So when we set them out, they'll have a range of possibilities that could be from 8% to 10%. What will happen is some folks will take some of the increases, those that are at the higher levels and lower levels get a different blend and a different mix. But no particular strategy. We ultimately always solve to total revenues at the bottom line. So we want residents to stay with us longer that gives us pricing power, but not anything here that was intentional.

亨德爾，謝謝你的提問。不，絕對不是。這真的就是成為採用率的原因。因此，當我們設置它們時，它們將具有 8% 到 10% 的可能性範圍。將會發生的是一些人會接受一些增加，那些處於較高水平和較低水平的人會得到不同的混合和不同的混合。但沒有特別的策略。我們最終總是在底線解決總收入問題。因此，我們希望居民與我們在一起的時間更長，這給了我們定價權，但這裡不是故意的。

Our next question comes from the line of John Kim with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 John Kim。

I wanted to ask about occupancy. Your lease growth rates are healthy and sector leading, but it seems to be at the expense of occupancy, which declined 90 basis points in April versus March. And Keith, you mentioned last year that during the second quarter, occupancy trended down. I think it was down 120 basis points during the quarter. And I was wondering if you are expecting a similar trajectory in the second quarter this year?

我想問一下入住情況。您的租賃增長率是健康的，並且處於行業領先地位，但這似乎是以入住率為代價的，4 月份與 3 月份相比下降了 90 個基點。 Keith，你去年提到第二季度入住率呈下降趨勢。我認為本季度下降了 120 個基點。我想知道您是否預計今年第二季度會出現類似的軌跡？

John, thanks for the question. When you look at the occupancy move that happened from March to April, I would -- there's 2 factors that really play into it. The first one is by design, we had 60 basis points that came down through seasonal frictional vacancy, and that's just additional lease expirations that are going through the process of moving out and moving it. And then the second piece to that would be the impact of the 200 additional skips and the VIX that happened in the first quarter that we're reoccupying through the balance of the year. And that's about 30 basis points. So when you look at those 2 pieces, that's really where you see the deceleration in occupancy.

約翰，謝謝你的提問。當您查看 3 月至 4 月發生的入住率變動時，我會 - 有兩個因素真正起作用。第一個是設計使然，我們有 60 個基點是由於季節性摩擦空缺而下降的，這只是額外的租約到期，正在經歷搬出和搬遷的過程。然後第二部分將是 200 次額外跳過的影響和第一季度發生的 VIX，我們將在今年餘下時間重新佔據。這大約是 30 個基點。因此，當您查看這兩件作品時，您確實會看到入住率下降的地方。

What I would further say is that it's exactly what we would have anticipated in our plan. And what we anticipate is we'll see even further occupancy that will drop as you get into, call it, July being the low point that we'll hit in the 95s and then it will bounce back and will grow back, and we ultimately will finish up the year at 97% in that range.

我要進一步說的是，這正是我們在計劃中所預期的。我們預計我們會看到入住率進一步下降，隨著你進入，稱之為 7 月，我們將在 95 年代達到低點，然後它會反彈並增長，我們最終將在該範圍內以 97% 結束這一年。

Okay. Just to clarify, in July, it'd be in the 95% range or it would drop down to 95%?

好的。澄清一下，在 7 月，它會在 95% 的範圍內還是會下降到 95%？

It will be in the range of 90 -- in the 95s.

它將在 90 到 95 之間。

Okay. My second question was on insurance. You noted in your press release a 40% increase in your same-store pool, and that was $1 million above budget. I was wondering if you could comment on how the insurance came in on your overall portfolio of just given there's a fair amount of your Florida assets not in the same-store pool?

好的。我的第二個問題是關於保險的。您在新聞稿中指出，您的同店池增加了 40%，這比預算高出 100 萬美元。我想知道你是否可以評論保險是如何影響你的整體投資組合的，因為你的佛羅里達州有相當數量的資產不在同店池中？

Yes, John, this is Paul. The pricing that we quoted in our release is really applicable to both the same-store and the overall portfolio. And so to provide a little bit more context and color. Our overall increase is 40%. About 10% of that is due to increased TIV or increased value of the properties and the remaining 30% is due to premium increases.

是的，約翰，這是保羅。我們在新聞稿中引用的定價確實適用於同店和整體產品組合。因此，提供更多的上下文和顏色。我們的總體增長是 40%。其中約 10% 是由於 TIV 增加或財產價值增加，其餘 30% 是由於保費增加。

But I think the most important thing that I don't want anybody to miss is the fact as we went through the renewal process, Patti Shwayder and her team did a wonderful job of negotiating our policy for this upcoming year at levels and risk consistent with what we've had in the past. When we executed this renewal, we did not take on any additional risks. We're not self-insuring more. We have very high-quality carriers, and we feel quite good about it, although the costs are higher than we would like.

但我認為我不想讓任何人錯過的最重要的事情是，在我們經歷續約過程時，Patti Shwayder 和她的團隊在談判我們來年的政策方面做得非常出色，風險水平和風險與我們過去所擁有的。當我們執行此更新時，我們沒有承擔任何額外的風險。我們不再自我保險。我們有非常優質的運營商，我們對此感覺很好，儘管成本比我們想要的要高。

Our next question comes from Chandni Luthra of Goldman Sachs.

我們的下一個問題來自高盛的 Chandni Luthra。

Guys, could you talk about non-same-store expense that rose substantially in the quarter. Was this -- what was the biggest driver? And was this all insurance? It's just a different way of asking the question that was just asked on the conference call just moments ago?

伙計們，你能談談本季度大幅上升的非同店費用嗎？這是——最大的驅動因素是什麼？這一切都是保險嗎？這只是提出剛才在電話會議上剛剛提出的問題的一種不同方式？

Chandni, in our supplemental, as you know, we report 2 different portfolios. One is our same-store and the second is other. What's in other is our couple of assets in New York City. And so if you look at our first quarter property revenue and property expenses from 2022, you'll see about $1 million, $1.5 million each. That's the New York City portfolio. .

Chandni，在我們的補充中，如你所知，我們報告了 2 個不同的投資組合。一個是我們的同店，第二個是其他的。其他的是我們在紐約市的幾處資產。因此，如果您查看我們從 2022 年開始的第一季度財產收入和財產支出，您將分別看到大約 100 萬美元和 150 萬美元。那是紐約市的投資組合。 .

But then if you look at that in the first quarter of '23, you'll see that, that has increased substantially. And that's just due to the acquisitions that we've completed in 2022 and '23. So there's nothing really unique or unusual that's happening there. It's just a function of our acquisitions in the past 12 months.

但是如果你在 23 年第一季度看一下，你會發現，它已經大幅增加。這僅僅是由於我們在 2022 年和 23 年完成的收購。所以那裡並沒有真正獨特或不尋常的事情發生。這只是我們過去 12 個月收購的結果。

Noted. And could you talk about some color across different markets? Are there any markets where you're using concessions at the moment? How supply tracking? Any general geographic market color would be very appreciated.

著名的。你能談談不同市場的一些顏色嗎？您目前在哪些市場上使用優惠？如何貨源跟踪？任何一般地理市場顏色將不勝感激。

Chandni, it's Keith. And well, let me walk you through a few things that I think about. The first one is that -- in D.C., we're seeing just a market that just has been extremely strong and stable. I'd say that not only is the occupancy has been incredibly good, but we've seen the ability to be able to continue to press rents there. And I'd say that, that stands out.

Chandni，我是 Keith。好吧，讓我向您介紹一些我想到的事情。第一個是 - 在 D.C.，我們看到的只是一個非常強勁和穩定的市場。我要說的是，不僅入住率非常好，而且我們已經看到能夠繼續在那裡壓租金的能力。我會說，那很突出。

Los Angeles is a standout, because we have good bad news going on there. One of the actions that came up was part of the occupancy trade. Well, those evictions, skips and the VIX that have occurred those really have multiple benefits to come back to us. The first one is, is that what we're seeing is that those light rootless are trading out at 10% plus. The addition to that is that we have residents, who are paying rent compared to those that weren't. And then the third piece is the great work that Paul has done reserving gives us the opportunity to have further collections for past-due balances from previous periods.

洛杉磯是一個突出的地方，因為那裡有壞消息。其中一項行動是入住交易的一部分。好吧，那些已經發生的驅逐、跳過和 VIX 確實有很多好處可以回到我們身邊。第一個是，我們所看到的是，那些無根的光以 10% 以上的價格進行交易。除此之外，我們有居民，他們正在支付租金，而不是那些沒有支付租金的人。然後第三部分是保羅所做的偉大工作，保留讓我們有機會進一步收集以前期間的逾期餘額。

So we see L.A. is one that we have a lot of optimism around, whether a short-term transition in occupancy, there's an upside that comes with that. And then I would just point out, of course, Miami and San Diego have been top winners for us. Denver is showing acceleration in a variety of places. So those are the way I'd walk you through the markets.

所以我們看到洛杉磯是一個我們非常樂觀的地方，無論是入住率的短期轉變，還是有一個好處。然後我只想指出，當然，邁阿密和聖地亞哥一直是我們的最大贏家。丹佛在很多地方都在加速發展。所以這些就是我帶你穿過市場的方式。

(Operator Instructions) Our next question comes from John Pawlowski with Green Street.

（操作員說明）我們的下一個問題來自 Green Street 的 John Pawlowski。

A question for Paul or Keith. I'm looking at the components of same-store revenue growth in the table you guys put at the bottom of Page 4 in the sup, the 80 bps sequential increase in residential rental income struck me is quite low relative to the really high blended lease spreads you achieved. Was there anything unusual drags in the first quarter outside of the late fees that would have suppressed sequential revenue?

保羅或基思的問題。我正在看你們放在第 4 頁底部的表格中的同店收入增長的組成部分，住宅租金收入連續 80 個基點的增長令我震驚，相對於真正高的混合租賃來說，這是相當低的您實現的點差。除了滯納金之外，第一季度是否有任何不尋常的拖累會抑制連續收入？

This is Paul. I'll start and see if Keith would like to add anything. There's nothing unusual about, I guess, what I would probably think about is the timing of expirations and how it's rolled through the rent roll. But the business, as Keith has mentioned, has proceeded consistent with what we expected.

這是保羅。我將開始，看看 Keith 是否願意添加任何內容。我想，這並沒有什麼不尋常的，我可能會想到的是到期時間以及它是如何通過租金滾動的。但正如基思所提到的，業務的進展與我們的預期一致。

And John, I wouldn't add anything other than -- Yes, John, I was just going to add is it's playing out as we would expect. And so maybe some timing in there, but nothing to point out.

約翰，除了 - 是的，約翰，我只是想補充一點，它正在按照我們的預期進行。所以也許有一些時間在那裡，但沒有什麼可指出的。

Okay. Was there an unusually low percentage of leases that actually expired outside of the -- in addition to the normal seasonally low period?

好的。除了正常的季節性低潮期之外，實際到期的租約百分比是否異常低？

No, nothing unusual outside of our norms. What I would tell you is our turnover was low and we had a low number of move-outs.

不，在我們的規範之外沒有什麼不尋常的。我要告訴你的是，我們的人員流動率很低，搬遷的次數也很少。

Okay. Last one for me, Paul, just in terms of the trajectory of deleveraging, you're trying to get to by the end of the year. Can you just clarify for me, I'm unclear what type of dispositions are contemplated through the balance of the year? I know you only have $50 million outlined on Page 10 of the sup, but feels like you need more in dispositions to get to deleveraging. So how much are you looking to sell this year?

好的。最後一個對我來說，保羅，就去槓桿化的軌跡而言，你正試圖在今年年底前完成。您能否為我澄清一下，我不清楚今年餘下時間考慮了哪些類型的處置？我知道你在 sup 第 10 頁上只列出了 5000 萬美元，但感覺你需要更多的配置才能去槓桿化。那麼你今年打算賣多少錢？

You're correct. In our supplemental, we guided to $50 million of dispositions. That's the plan. John and team are working on that, and we expect that will get executed. We also expect the benefit of EBITDA growth. And so if you think about the cadence of our FFO growth during the balance of the year, I commented earlier on the $0.17 of acceleration in the second half. That is really what's going to drive increased levels of EBITDA, and that will allow us to reduce our leverage ratio as we wrap up the year.

你是對的。在我們的補充中，我們指導了 5000 萬美元的處置。這就是計劃。 John 和團隊正在為此努力，我們希望它能得到執行。我們還預計 EBITDA 增長會帶來好處。因此，如果你考慮一下我們今年餘下時間的 FFO 增長節奏，我之前曾評論過下半年 0.17 美元的加速增長。這確實將推動 EBITDA 水平的提高，這將使我們能夠在年底時降低杠桿率。

There are no further questions at this time. I will now turn the call over to Terry Considine with any additional remarks.

目前沒有其他問題。我現在將電話轉給 Terry Considine，並附上任何其他評論。

Well, I just thank each of you for your interest in AIR. We have -- if you -- we left you with any questions, please call Paul or Matt O’'Grady or myself will do our best to answer them. And we look forward to seeing many of you next month at Neris. Be well.

好吧，我只是感謝你們每個人對 AIR 的興趣。我們——如果你——給你留下了任何問題，請打電話給保羅或馬特奧格雷迪，否則我會盡力回答他們。我們期待著下個月在 Neris 見到你們中的許多人。好起來。

That concludes today's conference call. You may now disconnect your lines.

今天的電話會議到此結束。您現在可以斷開線路。