Centerspace (CSR) 2023 Q1 法說會逐字稿

Thank you all for joining. I would like to welcome you to Centerspace Q1 2023 Earnings Call. (Operator Instructions) Thank you. I would now like to turn the conference over to your host, Joe McComish. Please go ahead, Joe.

感謝大家的加入。歡迎您參加 Centerspace 2023 年第一季度財報電話會議。 （操作員說明）謝謝。現在我想將會議交給主持人喬·麥科米甚。請繼續，喬。

Centerspace's Form 10-Q for the quarter ended March 31, 2023, was filed with the SEC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure package have been posted to our website at centerspacehomes.com and filed on Form 8-K.

Centerspace 截至 2023 年 3 月 31 日的季度的 10-Q 表格於昨天收盤後向 SEC 提交。此外，我們的收益發布和補充披露包已發佈到我們的網站 centerspacehomes.com 上，並以 8-K 表格形式提交。

It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on management's current views and assumptions. These statements are subject to risks and uncertainties discussed in our filings under the section titled Risk Factors and in our other filings with the SEC. We cannot guarantee that any forward-looking statement will materialize, and you are cautioned not to place undue reliance on these forward-looking statements. Please refer to our earnings release for reconciliations of any non-GAAP information which may be discussed on today's call. I'll now turn it over to Anne Olson for the company's prepared remarks.

值得注意的是，今天的言論將包括有關我們業務前景的陳述以及基於管理層當前觀點和假設的其他前瞻性陳述。這些陳述受到我們在標題為“風險因素”部分的文件以及我們向 SEC 提交的其他文件中討論的風險和不確定性的影響。我們不能保證任何前瞻性陳述都會實現，並提醒您不要過度依賴這些前瞻性陳述。請參閱我們的收益發布，了解今天電話會議上可能討論的任何非公認會計原則信息的對賬。我現在將其轉交給安妮·奧爾森，以供公司準備好的發言稿。

Good morning, everyone, and thank you for joining our call. With me this morning is Bhairav Patel, our Chief Financial Officer. Notably missing this morning is, Mark Decker, who led Centerspace for the last 6 years and transitioned out of the CEO role at the end of March. Mark is a tremendous leader who was key in building the foundation of our culture and drove a strategy that provided our team opportunities to learn and grow. Mark's accomplishments over the last 6 years are many, and I know Mark and the Board have confidence in the opportunity ahead for CSR. I share that confidence and I'm both humbled and excited to lead the company into its next chapter. We will miss Mark and wish him the best.

大家早上好，感謝您加入我們的通話。今天早上和我在一起的是我們的首席財務官 Bhairav Patel。今天早上值得注意的是馬克·德克爾 (Mark Decker)，他在過去 6 年裡一直領導 Centerspace，並於 3 月底卸任首席執行官一職。馬克是一位出色的領導者，他在構建我們的文化基礎方面發揮了關鍵作用，並推動了為我們的團隊提供學習和成長機會的戰略。馬克在過去 6 年中取得了很多成就，我知道馬克和董事會對企業社會責任未來的機會充滿信心。我也有同樣的信心，能夠帶領公司進入下一個篇章，我感到既謙卑又興奮。我們會想念馬克並祝他一切順利。

Today, I have great results to share for our company. The first quarter was very strong. The stability of our markets and operations resulted in core FFO growth of 9% over the same period last year. Revenue growth is still the highlight as we capture the loss to lease from large rental increases throughout 2022. Same-store revenue growth was 10.5%, driven by increases in scheduled rent leading to NOI growth of 11% over the prior comparable quarter. The expense pressure we experienced in 2022 is leveling off. The first quarter same-store expenses were flat over Q4 of 2022, a sign of easing inflation and efficacy of our cost control measures. Our positive operational results, coupled with the impact of the CEO transition and associated reduction of G&A, give us confidence that we can reiterate our guidance for this year. Bhairav will provide more detail in his remarks.

今天，我要為我們公司分享偉大的成果。第一季度非常強勁。市場和運營的穩定使得核心FFO比去年同期增長了9%。收入增長仍然是亮點，因為我們捕捉到了 2022 年全年租金大幅上漲帶來的租賃損失。同店收入增長了 10.5%，這是由預定租金增長推動的，導致 NOI 比上一季度增長 11%。我們在 2022 年經歷的費用壓力正在趨於平穩。第一季度同店支出與 2022 年第四季度持平，這是通脹緩解和我們的成本控制措施有效的跡象。我們積極的運營業績，加上首席執行官換屆和相關管理費用減少的影響，讓我們有信心重申今年的指導。拜拉夫將在講話中提供更多細節。

With respect to our revenue trends, in the first quarter, we achieved 2.5% increases on same-store new lease trade-outs and 5.8% increases on same-store renewals. This leads us to a 3.9% blended rent increase in Q1. These trends continued in April with 4.5% increases on same-store new lease trade-outs, 5.1% increases on same-store renewals which results in a 4.7% blended rent increase in April. We are experiencing broad strength across our markets, which are differentiated by our mid- and Mountain West presence. As positive leasing in 2020 demonstrated, our market exposure provides good stability and consistency in times of uncertainty, and we are seeing that play out again today.

從收入趨勢來看，第一季度，我們的同店新租交易增長了 2.5%，同店續租增長了 5.8%。這導致我們第一季度的綜合租金上漲 3.9%。這些趨勢在 4 月份得到延續，同店新租交易增長 4.5%，同店續租增長 5.1%，導致 4 月份綜合租金增長 4.7%。我們在各個市場中都展現出廣泛的實力，這因我們在中西部山區的存在而與眾不同。正如 2020 年的積極租賃所證明的那樣，我們的市場敞口在不確定時期提供了良好的穩定性和一致性，今天我們看到這種情況再次上演。

Hallmarks of our portfolio are lower supply, low unemployment and the affordability of rents with our average monthly rental rate in the first quarter of $1,450 and the portfolio rent to income of our resident household is just under 25%. With respect to supply, weighted average units under construction is 8.2% of inventory in our institutional markets of Denver and Minneapolis and 4.9% of inventory in our other markets. In Minneapolis and Denver, we achieved revenue growth of 9.5% and 10.5%, respectively, in Q1 compared to Q1 2022, even in light of elevated supply. As we look for external growth opportunities, we continue to like Denver and believe that the fundamentals of the Mountain West are holding up.

我們投資組合的特點是供應量較低、失業率較低以及租金負擔能力強，第一季度的平均月租金為 1,450 美元，投資組合租金佔居民家庭收入的比例略低於 25%。在供應方面，加權平均在建單位佔丹佛和明尼阿波利斯機構市場庫存的 8.2%，佔其他市場庫存的 4.9%。在明尼阿波利斯和丹佛，即使供應量增加，與 2022 年第一季度相比，我們第一季度的收入也分別增長了 9.5% 和 10.5%。當我們尋找外部增長機會時，我們仍然看好丹佛，並相信西部山區的基本面正在保持。

Transaction volume in Metro Denver was down significantly at 69% in Q1 compared to Q1 2022. And though velocity has tapered, we continue seeing deep competition on well-located opportunities. We have been quiet on the acquisition front since Q3 of 2022, but we are very pleased with the disposition of 9 communities that closed during the first quarter. In keeping with our strategy to improve our portfolio construction and exposure and thus our earnings quality, we disposed off communities in the St. Cloud, Omaha and Minneapolis markets that had lower rent and growth profiles and higher cost of operations.

與 2022 年第一季度相比，丹佛都會區的交易量大幅下降，第一季度下降了 69%。儘管速度有所放緩，但我們仍然看到對位置優越的機會的激烈競爭。自 2022 年第三季度以來，我們在收購方面一直保持沉默，但我們對第一季度關閉的 9 個社區的處置感到非常滿意。為了與我們改善投資組合建設和風險敞口從而提高盈利質量的戰略保持一致，我們處置了聖克勞德、奧馬哈和明尼阿波利斯市場中租金和增長狀況較低、運營成本較高的社區。

The 9 communities had an average monthly revenue per unit of $944 in Q1 2023 compared to our post-sale portfolio average monthly revenue per unit of $1,378, and the pricing we achieved was a 6% cap rate based on 2022 NOI for those communities. Given the dearth of acquisition opportunities and our stock price trading at an implied cap rate around 7.5%, we also used $6.7 million of those proceeds to buy back our stock at an average of approximately $54.17, a price we feel confident about given our ability to execute sales of our less desirable assets at a cap rate inside of where we are trading. We believe in our portfolio, its diversity and stability and our internal opportunity and enhance our portfolio quality. For these reasons, our stock is a good investment for us at this time.

2023 年第一季度，這 9 個社區的每單位平均月收入為 944 美元，而我們的售後投資組合每單位平均月收入為 1,378 美元，並且我們實現的定價是基於這些社區 2022 年 NOI 的 6% 上限。考慮到收購機會的缺乏以及我們的股價交易價格隱含上限約為 7.5%，我們還用其中的 670 萬美元以平均約 54.17 美元的價格回購了我們的股票，鑑於我們有能力，我們對這個價格充滿信心。以我們交易範圍內的上限利率出售我們不太理想的資產。我們相信我們的投資組合、其多樣性和穩定性以及我們的內部機會，並提高我們的投資組合質量。由於這些原因，我們的股票目前對我們來說是一項很好的投資。

Now I'll turn it over to Bhairav to discuss our overall financial results and 2023 outlook.

現在我將把它交給 Bhairav 討論我們的整體財務業績和 2023 年展望。

Thanks, Anne, and good morning, everyone. In my comments today, I will review results for the first quarter of 2023 and highlight actions we have recently taken to optimize our balance sheet and liquidity and discuss our outlook for 2023. Last night, we reported core FFO for the quarter ending March 31, 2023, of $1.07 per diluted share, which was in line with our expectations and driven by another strong quarter of operating performance with same-store NOI increasing 11% year-over-year.

謝謝安妮，大家早上好。在今天的評論中，我將回顧 2023 年第一季度的業績，並重點介紹我們最近為優化資產負債表和流動性而採取的行動，並討論我們對 2023 年的展望。昨晚，我們報告了截至 3 月 31 日的季度的核心 FFO， 2023 年，稀釋後每股收益為 1.07 美元，這符合我們的預期，並受到另一個強勁季度運營業績的推動，同店 NOI 同比增長 11%。

As Anne mentioned in her remarks, leasing trends remain positive across our portfolio, showcasing the stability of our markets. Please note that G&A expenses during the quarter included onetime expenses and charges totaling $3.2 million related to the CEO transition, which we have excluded from core FFO. Turning to our balance sheet. We took several steps during and subsequent to the first quarter of 2023 to enhance our balance sheet strength and maximize financial flexibility.

正如安妮在講話中提到的，我們的投資組合中的租賃趨勢仍然積極，這表明了我們市場的穩定性。請注意，本季度的一般管理費用包括與 CEO 過渡相關的一次性費用和費用，總計 320 萬美元，我們已將其排除在核心 FFO 之外。轉向我們的資產負債表。我們在 2023 年第一季度及之後採取了多項措施，以增強我們的資產負債表實力並最大限度地提高財務靈活性。

First, we used the initial proceeds from the asset sales to fully repay the $100 million term loan we put in place at the end of last year. We received approximately $48 million of proceeds from the sales subsequent to quarter end, which we promptly used to pay down the outstanding balance on our line of credit. Second, we further reduced our floating rate exposure by repaying another $90 million of our line of credit balance with proceeds from fixed rate secured financing we closed last week. The financing has a term of 12 years at a fixed rate of 5.04%, which represented a spread of under 140 basis points on the then existing 10-year treasury rate.

首先，我們用資產出售的初始收益全額償還了去年年底發放的 1 億美元定期貸款。我們從季度末後的銷售中收到了大約 4800 萬美元的收益，我們立即用這些收益來償還我們信用額度上的未償餘額。其次，我們用上週完成的固定利率擔保融資收益償還了另外 9,000 萬美元的信用額度餘額，進一步減少了浮動利率風險。該融資期限為 12 年，固定利率為 5.04%，與當時的 10 年期國債利率相差不到 140 個基點。

We are extremely pleased with the execution as we were able to close it ahead of schedule despite the disruption in the capital markets caused by the onset of the banking crisis. Pro forma for the impact of those actions, our floating rate exposure has been reduced to approximately $20 million or less than 2% of our total current debt outstanding of approximately $875 million. It also lowered our weighted average interest rate to 3.5% and increased our weighted average maturity to 7.2 years. We have total liquidity as of today of approximately $230 million, most of which is driven by the available amount on our line of credit, which, as I mentioned earlier, has been almost fully repaid with proceeds from the asset sales and refinancing.

我們對執行情況感到非常滿意，因為儘管銀行危機的爆發導致資本市場受到干擾，但我們還是能夠提前完成項目。考慮到這些行動的影響，我們的浮動利率風險敞口已減少至約 2,000 萬美元，占我們當前未償債務總額（約 8.75 億美元）的不到 2%。它還將我們的加權平均利率降低至 3.5%，並將加權平均期限延長至 7.2 年。截至目前，我們的流動性總額約為 2.3 億美元，其中大部分是由我們的信貸額度的可用金額驅動的，正如我之前提到的，該額度已幾乎全部用資產出售和再融資的收益償還。

With less than $25 million of our total debt outstanding coming due in the next 24 months and pro forma leverage of less than 7x net debt to adjusted EBITDA, we believe we are in one of the strongest position we have ever been from a balance sheet perspective, and we are able to immediately leverage the strength of our balance sheet by repurchasing $6.7 million of our own stock at an average price of $54.17 per share which we believe is a significant discount to the underlying value of our portfolio, as Anne previously discussed.

我們的未償債務總額中不到 2500 萬美元將在未來 24 個月內到期，預計淨債務與調整後 EBITDA 的槓桿率低於 7 倍，我們相信，從資產負債表的角度來看，我們處於有史以來最強勁的地位之一，我們能夠立即利用我們資產負債表的實力，以每股 54.17 美元的平均價格回購 670 萬美元的股票，我們認為這比我們投資組合的基本價值有很大折扣，正如安妮之前討論的那樣。

Now I will discuss our financial outlook for 2023, which is presented on Page S-15 of the supplemental. We are maintaining our guidance ranges for same-store NOI and core FFO as our first quarter results have been in line with our expectations, barring the incremental G&A impact as a result of the CEO transition. As I mentioned earlier, we have excluded the incremental G&A from core FFO leading our expectations for core FFO relatively unchanged.

現在我將討論我們 2023 年的財務前景，該前景在補充材料的 S-15 頁上介紹。我們維持同店 NOI 和核心 FFO 的指導範圍，因為我們第一季度的業績符合我們的預期，排除首席執行官換屆造成的增量一般管理費用影響。正如我之前提到的，我們已將增量 G&A 從核心 FFO 中排除，導致我們對核心 FFO 的預期相對不變。

Excluding the onetime charge, the impact of the transition is G&A savings of approximately $1 million for 2023, and we are currently determining how much of the potential savings may need to be reallocated as we reorganize the support functions. Our strong first quarter results and potential G&A savings give us confidence that we will be above the midpoint of our current guidance range for core FFO. We will provide an updated outlook next quarter, which comprehensively incorporates the impact of operating activity during the first half of the year and any G&A savings we expect to realize.

不包括一次性費用，過渡的影響是到 2023 年可節省約 100 萬美元的一般管理費用，我們目前正在確定在重組支持職能時可能需要重新分配多少潛在節省。我們強勁的第一季度業績和潛在的一般費用節省使我們有信心我們將高於當前核心 FFO 指導範圍的中點。我們將在下季度提供最新的展望，其中全面考慮了上半年經營活動的影響以及我們預計實現的任何一般管理費用節省。

To conclude, I would like to congratulate Mark for his many accomplishments as CEO of Centerspace and wish him all the very best in his future endeavors. I'm thankful for the opportunity to work with him over the past 1.5 years and have greatly benefited from his leadership and guidance during my time at Centerspace. As Anne said, we do have a tremendous opportunity ahead of us, and I believe we are very well positioned to capitalize on the opportunity under her leadership. I look forward to assisting her in shaping the next chapter in the evolution of Centerspace. And with that, I will turn it over to the operator to open it up for questions.

最後，我要祝賀 Mark 作為 Centerspace 首席執行官所取得的諸多成就，並祝愿他在未來的事業中一切順利。我很感謝過去 1.5 年裡有機會與他共事，並且在 Centerspace 工作期間，我從他的領導和指導中受益匪淺。正如安妮所說，我們確實面臨著巨大的機會，我相信在她的領導下，我們完全有能力利用這個機會。我期待著協助她開創 Centerspace 發展的下一個篇章。然後，我會將其交給操作員以供提問。

(Operator Instructions) We have the first question from Brad Heffern of RBC Capital Markets.

（操作員說明）我們有來自 RBC 資本市場的 Brad Heffern 的第一個問題。

Yes. Anne first of all, congratulations on your first call as CEO. I'm wondering if you can talk about your vision for the company and call out any potential differences in either focus or strategy versus how things were done under Mark's leadership?

是的。 Anne 首先，祝賀您作為首席執行官第一次接到電話。我想知道您是否可以談談您對公司的願景，並指出與馬克領導下的工作方式相比，在重點或戰略方面是否存在任何潛在差異？

Yes, Brad. Thank you. I think I've been here for 6 years and really worked closely with Mark on the strategy of the company and how we execute. And so we're not expecting a lot of huge changes. I do think that as we moved into 2023 as a team, we refocused our execution standards and accountability systems in line with some of the transformation we had done to our back office with respect to technology enhancements and investments that we had made over the past couple of years.

是的，布拉德。謝謝。我想我已經在這里工作了 6 年，並且在公司戰略和執行方式方面與 Mark 密切合作。因此，我們預計不會發生很多巨大的變化。我確實認為，當我們作為一個團隊進入 2023 年時，我們重新調整了我們的執行標準和問責系統，以符合我們在過去幾年中對後台進行的一些改造，包括技術增強和投資年。

So I do think it feels a little bit different. That was planned as part of both our 2023 goals when Mark was here and as part of the transition that we would really accelerate our focus on our internal opportunity to better the company and better the results and then also strategically really think about incremental improvements to continue to enhance both the platform and our portfolio construction. So it might feel a little bit different, but it's all kind of part of the same plan and vision.

所以我確實認為感覺有點不同。當馬克在這裡時，這是我們計劃的 2023 年目標的一部分，也是過渡的一部分，我們將真正加快對內部機會的關注，以改善公司和改善結果，然後從戰略上真正考慮漸進式改進以繼續增強平台和我們的投資組合建設。所以感覺可能有點不同，但都是同一個計劃和願景的一部分。

Okay. And then on the repurchase, obviously, you did a little bit in the first quarter. I'm curious how you think about doing more in the context of it either increasing leverage, if you do it on the balance sheet or potentially reducing scale if you did it through dispositions?

好的。然後，在回購方面，顯然，您在第一季度做了一些工作。我很好奇您如何考慮在資產負債表上增加槓桿率或如果通過處置來減少規模方面採取更多措施？

Yes, that's a great question. I mean our approach has been to be very judicious. We really want to keep an eye on the balance sheet and be very careful with how we use that balance sheet and what the best investment for us is at the time. I do think, as we guided at the beginning of the year and reiterated, we do have a couple more dispositions that we would like to undertake this year, and that will have an impact both on our ability -- some additional pay down of debt and potentially make sure we have enough dry powder to take advantage of any external opportunities that come our way.

是的，這是一個很好的問題。我的意思是我們的方法非常明智。我們真的想密切關注資產負債表，並非常小心地使用該資產負債表以及當時對我們來說最好的投資是什麼。我確實認為，正如我們在今年年初所指導和重申的那樣，我們今年確實希望採取更多措施，這將對我們的能力產生影響——一些額外的債務償還並可能確保我們有足夠的干粉來利用我們遇到的任何外部機會。

Okay. And then finally, on the rent growth side of things, what's been the change in market rent in your market so far this year? And can you talk about where that sits relative to what the expectation was in guidance?

好的。最後，在租金增長方面，今年到目前為止，您所在市場的市場租金發生了哪些變化？您能否談談相對於指導中的期望的情況？

So I think we're running a little bit ahead on market rents of where our expectations were. But with only 1 quarter behind us, that's not a lot of our lease expirations. I think the first quarter is actually our smallest lease expiration profile at 16%. And so we really want to get into the meat of the leasing season. We feel good about the April results. As you probably noted in our remarks, April was a little bit ahead on new lease trade-outs than the first quarter. So that bodes well.

因此，我認為我們的市場租金略高於我們的預期。但距離我們只剩下 1 個季度了，我們的租約到期時間並不長。我認為第一季度實際上是我們最小的租賃到期情況，為 16%。所以我們真的很想進入租賃季節的重點。我們對四月份的結果感覺良好。正如您可能在我們的評論中指出的那樣，四月份的新租賃交易比第一季度稍微領先一些。所以這是個好兆頭。

It remains to be seen. The big chunk of leasing comes in the middle of the year for us, and that's when we're really going to see -- the projections that we have in our guidance are full year projections. So running a little bit ahead of them at the beginning of the year, it doesn't tell us too much about how the rest of the year is going to go.

它還有待觀察。對我們來說，大部分租賃發生在年中，那時我們真正會看到——我們在指導中的預測是全年預測。因此，在年初領先於他們一點，並不能告訴我們太多有關今年剩餘時間的情況。

We now have Barry Oxford of Colliers.

現在我們有高力公司的巴里·牛津。

Great. Just to build on that question regarding debt pay down. You clearly have taken care of any short-term maturities. But what type of debt would you be going after in your capital stack when you guys do dispositions should you choose to pay down more debt?

偉大的。只是為了建立有關債務償還的問題。您顯然已經處理了任何短期到期事宜。但是，如果您選擇償還更多債務，那麼當你們進行處置時，您的資本堆棧中會追求什麼類型的債務？

Yes. I mean, Barry, this is Bhairav. So we -- yes, I mean, I think as we look at dispositions, Anne mentioned, we have a couple more dispositions included in our guidance. We do expect that as we go through the year, we will have a little more floating rate debt on the line of credit that we would be able to pay down. So that is really the only debt that we are looking to pay down because the fixed rate debt is fixed, and it doesn't really give you a lot of flexibility in terms of pay downs.

是的。我是說，巴里，這是拜拉夫。所以我們 - 是的，我的意思是，我認為當我們考慮處置時，安妮提到，我們的指南中還包含了更多處置。我們確實預計，隨著這一年的過去，我們的信貸額度上將有更多一些我們能夠償還的浮動利率債務。因此，這實際上是我們希望償還的唯一債務，因為固定利率債務是固定的，並且它並沒有真正為您提供很大的還款靈活性。

So we would be looking to pay down more floating rate debt, which we expect will kind of ramp up a little bit as we go through the year. So with the planned dispositions, that would be the goal.

因此，我們將尋求償還更多的浮動利率債務，我們預計這一債務在今年會有所增加。因此，按照計劃的部署，這將是目標。

Right. Okay. Great, great. And then, Anne, a question for you with the 7.5% implied cap rate, when you look at acquisitions, are they -- are acquisitions kind of bumping up or at least relatively close to that to make acquisitions look opportunity or make them look opportunistic? Or are you going to be kind of viewing your stock as probably the best place to, I guess, to buy your own portfolio?

正確的。好的。很棒很棒。然後，安妮，問你一個關於 7.5% 隱含資本化率的問題，當你考慮收購時，收購是否會有所增加或至少相對接近，以使收購看起來是機會或讓它們看起來是機會主義的？或者你是否會將你的股票視為購買你自己的投資組合的最佳選擇？

Yes. I think we are not seeing acquisitions at that level right now that would be accretive. I mean we're still seeing in our targeted markets sub-4 cap transaction -- or sub-5 cap transactions, sorry. And I do think you're right that the best use of our capital right now is to look internally, not just our stock, but also our value-add program, where we are really getting the returns that we envisioned.

是的。我認為我們現在還沒有看到這種水平的收購會帶來增值。我的意思是，我們仍然在目標市場中看到低於 4 上限的交易，或者低於 5 上限的交易，抱歉。我確實認為你是對的，現在我們資本的最佳用途是審視內部，不僅僅是我們的股票，還有我們的增值計劃，我們真正獲得了我們預期的回報。

And so as the year progresses, we're hopeful that the transaction market picks up and there's some leveling off of price. There's a pretty big disparity right now between the bid and ask. And as that maybe works itself out, we think that acquisitions hopefully will become a little bit more accretive with -- and also that, that stock price can move as well to help us out.

因此，隨著時間的推移，我們希望交易市場回暖並且價格趨於平穩。目前出價和要價之間存在相當大的差異。隨著這可能會自行解決，我們認為收購有望變得更加增值——而且股價也可以變動來幫助我們擺脫困境。

Your next question comes from Rob Stevenson of Janney.

您的下一個問題來自 Janney 的 Rob Stevenson。

And just to pick up on Barry's question there. How many units are there left in the portfolio that you have targeted for redevelopment today and where the numbers make sense? And what's the aggregate dollar value of those investments? I think you guys have $25 million, $26 million at the midpoint in guidance for '23. What's behind that?

順便回答一下巴里的問題。您今天計劃重新開發的投資組合中還剩下多少個單元，這些數字有意義嗎？這些投資的總價值是多少？我認為你們 23 年的指導預算中值有 2500 萬美元、2600 萬美元。這背後是什麼？

Yes. So we have quite a few projects in the pipeline now. And with respect to the pipeline, it's always growing because 4 years ago, we buy an asset that was built in 2010 that looks clearly stable. That right now is becoming -- coming into the value-add pipeline. So -- and you're right on, we have about $25 million scheduled for this year. Our value-add pipeline is not only unit renovations, it's also things like additions of smart home technology, which -- that can affect the entire portfolio. So all 14,000 units are kind of right for that, those kind of investments.

是的。所以我們現在有很多項目正在進行中。至於管道，它總是在增長，因為 4 年前，我們購買了 2010 年建造的資產，看起來顯然很穩定。現在這正在成為——進入增值渠道。所以——你說得對，我們今年計劃了大約 2500 萬美元。我們的增值渠道不僅包括單元翻新，還包括智能家居技術的添加，這可能會影響整個投資組合。因此，所有 14,000 個單位都適合此類投資。

So I feel good if I look at both the pipeline now, which I think we have about a little over 1,000 units kind of under renovation or being touched, that will continue to change and grow. So over time, it's kind of -- it's never ending, never ending pipeline as product gets older or new enhancements come out that we're able to implement into the communities.

因此，如果我現在看看這兩條管道，我感覺很好，我認為我們有大約 1,000 多個單位正在裝修或正在接觸中，這些單位將繼續變化和增長。因此，隨著時間的推移，隨著產品變舊或我們能夠在社區中實施的新增強功能的出現，它的管道永遠不會結束。

And what's the likelihood that, that $25 million-or-so for this year increases dramatically if you don't see any material upward expansion in cap rates and that becomes your best source of deployment other than stock repurchases? I mean how big could that be in any given year, given your staffing, given your subcontractors, et cetera? I mean how much more can you do than 1,000 units in a year?

如果你沒有看到資本化率有任何實質性的向上擴張，並且這成為除股票回購之外的最佳部署來源，那麼今年 2500 萬美元左右的資金大幅增加的可能性有多大？我的意思是，考慮到您的人員配置、分包商等等，在任何一年中，這個數字會有多大？我的意思是，你一年能做的事情比 1,000 件多多少？

Yes. I mean we would really have to ramp up on the staffing side and that really increases the execution rent. So we feel really good about $25 million. To the extent that does -- would -- might get increased, it would have to be a large kind of portfolio-wide implementation such as a portion of smart home technology and that's not -- we're taking that kind of rolling through the portfolio rather than doing it all at once. So we feel really good about the $25 million. I think we feel great about where that puts us with respect to the dispositions this year and how we fund those. So I don't expect that there's going to be a big ramp up past that amount.

是的。我的意思是，我們確實必須增加人員配備，這確實會增加執行租金。所以我們對 2500 萬美元感到非常滿意。在某種程度上，這確實 - 將會 - 可能會增加，它必須是一種大型的投資組合範圍內的實施，例如智能家居技術的一部分，而這不是 - 我們正在採取這種滾動方式投資組合而不是一次性完成所有事情。所以我們對 2500 萬美元感到非常滿意。我認為我們對今年的處置以及我們如何為這些資金提供資金感到滿意。因此，我預計不會出現超過該金額的大幅增長。

Okay. And then what's your exposure these days going -- looking forward to utility costs? I know that you guys have put a bunch of stuff in place over the last year or so. But how much -- when you look forward and to the fall of '23 and into '24, should your exposure there be reduced as a result of all these programs?

好的。那麼您這些天的風險敞口如何——期待公用事業成本？我知道你們在過去一年左右的時間裡已經完成了很多工作。但是，當您展望 23 年秋季和 24 年時，您的暴露程度應該因所有這些計劃而減少多少？

Great question. As you probably recall, last year, we started rolling out our ratio utility billing system, RUBS, the gas portion, which will decrease our -- the volatility of our own expenses with the offsetting revenue. And at the end of the first quarter, we're 26% of the way through the portfolio and rolling that out. .

很好的問題。您可能還記得，去年，我們開始推出我們的比率公用事業計費系統 RUBS（天然氣部分），這將減少我們自己的支出的波動性和抵消收入。在第一季度末，我們的投資組合已完成 26%，並將其推出。 。

And so we really feel like there -- as the year goes on, and particularly as we get to fall, we should be about 75% of the way through the fall, maybe even 80%, given the larger lease exposure. And that's really going to help us generate that offsetting revenue to mitigate the volatility in utility costs that we saw in -- particularly in 2022.

因此，我們確實有這樣的感覺——隨著時間的推移，特別是當我們進入秋季時，考慮到更大的租賃風險，我們應該已經完成了秋季的 75% 左右，甚至可能是 80%。這確實將幫助我們產生抵消收入，以減輕我們所看到的公用事業成本的波動——特別是在 2022 年。

And how much is your exposure to water and electric or is it all basically just natural gas for the most part?

您接觸水和電的程度是多少，還是基本上都只是天然氣？

Yes. The majority of our exposure was in natural gas. Water, sewer, trash, those things had already been part of our RUBS program across the portfolio.

是的。我們的大部分暴露是天然氣。水、下水道、垃圾，這些東西已經成為我們整個產品組合中 RUBS 計劃的一部分。

We now have (inaudible) from Baird.

我們現在有來自貝爾德的（聽不清）。

Congrats, Anne. Could you talk a little bit more about your revenue management strategy over the next few months? And is the plan to continue pushing rate or really focus more on maintaining occupancy?

恭喜，安妮。您能多談談您未來幾個月的收入管理策略嗎？計劃是繼續提高房價還是更注重維持入住率？

That's always a balance and the argument that we have internally here just about every day on revenue management. So I think we would like to run a little bit more occupied during this time where we have heavy lease expirations. It's typical that our occupancy dipped slightly because we really are trying to maximize revenue overall, which means that you have to watch closely pushing rate versus occupied.

這始終是我們內部每天就收入管理問題進行的平衡和爭論。因此，我認為在租約即將到期的這段時間裡，我們希望能夠多一點忙碌。我們的入住率通常會略有下降，因為我們確實在努力實現整體收入最大化，這意味著您必須密切關注入住率與入住率的關係。

And we really have to take into account this year more so than years past, the experience we had with turnover costs. As an industry, those costs have increased significantly, which really makes keeping our residents in place and the resident experience to drive retention, particularly important as we balance those 2 factors.

今年我們確實必須比往年更多地考慮我們在周轉成本方面的經驗。作為一個行業，這些成本顯著增加，這確實使得讓我們的居民留在原地並通過居民體驗來推動保留變得尤為重要，因為我們平衡了這兩個因素。

We now have Buck Horne of Raymond James.

我們現在有雷蒙德·詹姆斯的巴克·霍恩。

Wanted to get some extra color on bad debt trends. If there's been any changes recently in delinquency patterns or skips in a VIX, and was there any benefit in the quarter from lower bad debt?

希望獲得有關壞賬趨勢的更多信息。最近拖欠模式是否有任何變化或 VIX 指數出現跳躍，本季度壞賬下降是否有任何好處？

Buck, this is Bhairav. Yes, I mean we do see stabilization in those trends. So with respect to the first quarter, bad debt was about 25 basis points, which is in line with historical averages, and that did benefit us from a year-over-year perspective because last year it was higher than the 25 basis points.

巴克，這是拜拉夫。是的，我的意思是我們確實看到這些趨勢趨於穩定。因此，就第一季度而言，壞賬約為25個基點，與歷史平均水平一致，從同比角度來看，這確實使我們受益，因為去年它高於25個基點。

So yes, we do see some return to pre-COVID trends from a bad debt perspective. And at 25 basis points, it's slightly ahead of where we had kind of projected it. So -- but again, bad debt tends to be volatile. So we feel pretty good about what we've kind of factored into the numbers at this point.

所以，是的，從壞賬的角度來看，我們確實看到了疫情前趨勢的一些回歸。以 25 個基點計算，略高於我們的預測。因此，壞賬往往會波動。因此，我們對目前已將這些因素納入數字中的因素感到非常滿意。

All right. Appreciate that. Very helpful. And post the portfolio disposition here of those 9 properties, how is the CapEx profile of the remaining portfolio change? What would be a good run rate, would you say, for kind of annualized recurring CapEx for the remaining portfolio?

好的。感謝。很有幫助。並在此發布這 9 個房產的投資組合配置，其餘投資組合的資本支出情況有何變化？您認為，對於剩餘投資組合的年化經常性資本支出來說，一個好的運行率是多少？

Well, when we guided and gave our per door number at the beginning of the year, we had estimated in those dispositions. So I think that guidance remains unchanged, about $1,100, $1,150 a door. We had already factored that in when we made our projections. It is helping getting some of those older properties off of the books.

好吧，當我們在年初指導並給出每扇門的數量時，我們已經對這些配置進行了估計。所以我認為指導價保持不變，大約每門1,100美元，1,150美元。我們在做出預測時已經考慮到了這一點。它有助於將一些較舊的房產從賬簿中剔除。

Understood. Understood. And is the -- elevated level of turn cost, is that just a function of kind of a legacy effect of COVID trends or just very extended tenant days? And when will turn costs kind of normalize as those units come back available?

明白了。明白了。周轉成本水平是否升高，這只是新冠疫情趨勢遺留效應的結果，還是只是租戶天數延長的結果？隨著這些單位恢復可用，成本何時才能正常化？

Yes. I think the driver of high turn cost is really the increasing inflation on services, in particular, and also cost of goods. So we really saw that last year and then also -- Bhairav, do you have a comment on that?

是的。我認為高周轉成本的驅動因素實際上是服務業通貨膨脹的加劇，特別是商品成本的上漲。所以我們去年確實看到了這一點，然後 - Bhairav，你對此有什麼評論嗎？

Yes. I mean last year was also elevated because we had some units from -- overall turnover costs were elevated because we had units from the KMS portfolio that were turning for the first time. A lot of those units were occupied for a long, long time by the residents. So we spent a decent amount of turnover capital and expense just to kind of bring it up to CSR standards.

是的。我的意思是，去年的成本也有所提高，因為我們有一些單位——總體周轉成本有所上升，因為我們有來自 KMS 投資組合的單位首次周轉。其中許多單位都被居民長期佔用。因此，我們花費了大量的周轉資本和費用，只是為了使其達到企業社會責任標準。

Now some of that has already rolled into the existing portfolio. So we do expect the impact of that to kind of moderate over time. So at this point, if you -- in our guidance, we have factored churn costs being lower this year versus last year and a lot of it is a result of some of the cost control measures that we've put in place. And a lot of that is a reflection of some of these units that we've already turned last year.

現在其中一些已經納入現有的產品組合中。因此，我們確實預計這種影響會隨著時間的推移而減弱。因此，在這一點上，如果你——在我們的指導中，我們已經考慮到今年的客戶流失成本比去年更低，其中很大一部分是我們採取的一些成本控制措施的結果。其中很多都反映了我們去年已經轉向的一些單位。

(Operator Instructions) I can confirm, we have had no further questions registered. So I would like to hand it back to the management team.

（操作員說明）我可以確認，我們沒有收到任何進一步的問題。所以我想把它交還給管理團隊。

Well, thank you all for joining us today and a special thanks to our team who are helping us get these great results, and we'll see you, hopefully, all at NAREIT.

好吧，感謝大家今天加入我們，特別感謝我們的團隊，他們幫助我們取得了這些出色的成果，希望我們能在 NAREIT 見到你們。

Thank you all for joining. I can confirm this does conclude today's call. Please have a lovely rest of your day, and you may now disconnect your lines.

感謝大家的加入。我可以確認今天的電話會議確實結束了。請度過愉快的一天，現在您可以斷開線路了。