Apartment Income REIT Corp. (NYSE:AIRC) Q3 2023 Results Conference Call November 3, 2023 1:00 PM ET
Company Participants
Lisa Cohn - President and General Counsel
Terry Considine - CEO
Keith Kimmel - President, Property Operations
Josh Minix - Chief Investment Officer
Paul Beldin - CFO
Matt O’Grady - SVP, Capital Markets
Conference Call Participants
Eric Wolfe - Citigroup
Rich Anderson - Wedbush
John Kim - BMO Capital Markets
Haendel St. Juste - Mizuho
Robyn Luu - Green Street
Michael Goldsmith - UBS
Rich Anderson - Wedbush
Operator
Welcome and thank you for attending today’s AIR Communities Third Quarter 2023 Earnings Conference Call. My name is John and I’ll be your moderator for today’s call. All lines have been placed on mute to prevent any background noise. [Operator Instructions]
I would now like to pass the conference over to Lisa Cohn, President and General Counsel of AIR Communities. You may proceed.
Lisa Cohn
Thank you, John, and good day everyone. My name is Lisa Cohn and I am President and General Counsel of AIR Communities.
During this conference call, the forward-looking statements we make are based on management’s judgments, including projections related to 2023 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. We’ll also discuss certain non-GAAP financial measures such as FFO. These are defined and are reconciled to the most comparable GAAP measures in the supplemental information that is part of the full earnings release published on AIR’s website.
Prepared remarks today come from Terry Considine, our CEO; Keith Kimmel, President of Property Operations; Josh Minix, our Chief Investment Officer; and Paul Beldin, our CFO. Other members of management are also present and all of us will be available during the question-and-answer session, will follow our prepared remarks.
I will now turn the call to Terry Considine. Terry?
Terry Considine
Thank you, Lisa, and my thanks to everyone on this call for your interest in AIR. AIR had a solid third quarter and business is good. I start with three observations. The first operations matter. Keith and his talented team continue to outperform. Second, portfolio composition matters. At a national level, there’s a tremendous amount of competitive new supply, but there is no national market for apartment renters, only local markets, submarkets and neighborhoods.
AIR is diversified by markets and price points. And as we look to 2024, our regular review of new supply property-by-property shows a range that’s been typical over the past several years. Third, interest rates matter. The increase in the 10-year rate has disrupted property pricing and created opportunities for profitable acquisitions. In the third quarter, AIR made successful paired trades that upgraded our portfolio and increased the expected growth rate in recurring cash flow.