Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How should we think about the development accretion you're going to see in earnings this year versus last year? A: Kevin O'Shea, CFO, explained that there are several factors affecting this, including slightly higher capitalized interest and lower occupancy levels this year. They anticipate about $0.15 of growth from investment platforms, primarily from development, which translates to about 120 basis points of growth.
Q: Are there any additional challenges to developing or operating BTR (Build-to-Rent) communities compared to traditional multifamily? A: Matthew Birenbaum, CIO, noted that while they are open to acquiring portfolios aligned with their strategic priorities, most BTR developments have been in tertiary markets. They plan to grow more of this product through development and funding middle-market builders. Sean Breslin, COO, added that operating BTR communities aligns with their mobile-enabled workforce strategy.
Q: Can you provide more color on your thoughts on new renewal leases and what the trajectory looks like throughout the year? A: Sean Breslin, COO, stated they expect like-term effective rent change to average 3% for the year, with slightly stronger growth in the second half. Renewals are expected to average in the mid-4% range, while new move-ins will average around mid-1%.
Q: Have you seen any pickup in the transaction market, and how does it affect your ability to rotate into expansion markets? A: Matthew Birenbaum, CIO, mentioned that the transaction market has been volatile, with a significant pickup in Q4. They plan to be more active in asset trading, aiming for roughly $1 billion on both buying and selling sides this year, leveraging their balance sheet and strategic capabilities.
Q: How are recent demographic shifts impacting your decision on future allocation to suburbs? A: Benjamin Schall, CEO, affirmed their focus on increasing suburban exposure to 80% and expanding market presence to 25%. They are also evolving their product offerings to align with market demands and demographic trends.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.