Q3 2022 Boardwalk Real Estate Investment Trust Earnings Call
Ladies and gentlemen, and welcome to the Boardwalk Real estate investment Trust third quarter 2022 earnings Conference call. At this time all lines are in a listen only mode. Following the presentation, we'll conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero for the operator. This call is being recorded on November <unk>.
2020 to now like to turn the conference over to Eric <unk> VP of Investor Relations. Please go ahead Sir.
Thank you David and welcome to the Boardwalk REIT 2022 third quarter results Conference call with me here today are <unk>, Chief Executive Officer, James Hall, President, Lisa <unk>, Chief Financial Officer.
And Jeff close Vice President of asset management and development.
Please note that this call is being broadly disseminated by way of webcast. If you have not already done. So please visit <unk> dot com slash investors, where you will find a link to today's presentation as well as PDF files of the Trust's financial statements MD&A as well as supplemental information package.
Starting on slide two we would like to remind our listeners that certain statements in this call and presentation may be considered forward looking statements, although the expectations set forth in such statements are based on reasonable assumptions boardwalks future operation.
And its actual performance may differ materially from those in any forward looking statements.
Additional information that could cause actual results to differ materially from these statements are detailed in boardwalks publicly filed documents I would like to now turn the call over to Sam Coleus. Thank you, Eric and welcome everyone to our Q3 2022 conference call.
Starting on slide four our performance with our GAAP and non-GAAP measures of <unk> per unit net asset value and unit holder equity and fair value of investment properties, all seen an increase from the prior quarter last year with the exception of profit as a result of noncash accounting.
Adjustments for fair value relative to the prior quarter last year.
Slide five our Q3 2022 <unk> per unit growth is at seven 6% from the same quarter last year, reflecting stronger apartment rental fundamentals in our core markets.
Slide six our strategy to create value for our stakeholders begins with our people.
We are so grateful for our extraordinary team who continues to innovate and deliver our places home for our residents members in turn this leads to leading earnings performance, which we believe will continue to result in strong total returns for our stakeholders our strategic focus is our <unk>.
Significant organic growth from utilizing our proven platform that focuses on operational excellence to optimize NOI growth. When we pair this with the current improvement in the apartment rental market fundamentals on our solid foundation of some of the most affordable rents in Canada, we are well positioned.
<unk> to continue to accelerate on our organic growth trend.
Accretive capital recycling focuses on opportunistic investment into acquisitions development and investment into our own high quality existing portfolio with a tactical unit buyback.
These opportunistic investments combined with our operational optimization have positioned boardwalk for increasing asset values within boardwalks diversified and high quality multifamily portfolio, our solid financial foundation provides flexibility on our balance sheet with our growing free cash flow.
And with Siem HC insurance on 95% of our financings, which provides access to low cost mortgage capital with reduced renewal risk.
Slide seven we are delivering solid growth boardwalks existing exposure to strong rental demand non price controlled markets with increased immigration significant organic growth as Alberta, and Saskatchewan at some of the most affordable rental rates in the country with limited.
New supply versus demand in both international and inter provincial migration rising interest rates, making homeownership more expensive and rising construction costs are all widening the gap between our replacement cost of our assets and our current evaluation.
Construction levels remain low relative to historical levels supported by a stronger demand for housing our largest market Edmonton has seen significant occupancy gains contributing to our solid performance apartment rental fundamentals continued to improve with lower vague.
P&C and new.
And incentives almost disappearing.
Along with a continued drop in the existing incentives.
All of our other markets have high occupancy and strong apartment rental fundamentals.
Slide eight Alberta continues to have a significant amount of job vacancies in several sectors housing affordability continues to attract companies and contributes to significant positive in migration.
Headlines continue to reflect a diversifying economy that some economists predict will avoid recession.
<unk> nine shows our large presence in affordable and non price controlled markets without burden, Saskatchewan, representing 62, 5% and 10, 4% of our portfolio boardwalks current mark to market, which includes the reduction of incentives averages $143.
For suites, and equates to a significant $55 $6 million revenue opportunity slide.
Slide 10.
Occupied rents in Alberta, adjusted for inflation or at the same levels at March 2016, there remains a significant gap between occupied rents and the changeover consumer price index over the last eight years.
I'd 11 shows our high affordability in our core Edmonton and Calgary market of rent below 30% of medium rental household income. This slide also shows how balanced are supply is with higher demand of in migration in our core markets slide.
Slide 12 shows our improving occupancy as a result of improving apartment rental fundamentals in all our key markets move outs versus last year are also dropping as our retention increases slide 13 shows our key operational metrics with higher.
And see lower incentive higher occupied rents, resulting in higher revenues for the quarter.
Slide 14 shows continual improvement and net new and renewal rental rates year over year, we have seen a significant improvement.
Slide 15 shows that 2.3% sequential quarterly revenue gain up.
Two 2% last quarter, reflecting strong apartment rental fundamentals for all our markets, we would like to now pass the call onto Lisa <unk>, who will provide us with an overview of our portfolio performance balance sheet and repositioning results Lisa.
Thank you Sam moving to slide 16 for Q3 2022 same property net operating income increased by five 2% as compared to Q3 2021.
An increase in operating expenses of four 3%, primarily the result of increased wages and salaries and property taxes was more than offset by revenue growth of four 9%.
In particular with the increased rental demand in Edmonton during the summer leasing season, the trust incurred higher operating expenses to meet demand, which has positioned our imaging portfolio with higher occupancy heading into the fall and winter.
In addition property taxes were higher in Edmonton as a result of the timing of the minister.
Of the municipalities assessments and payments overall portfolio wide, we expect a year over year increase of approximately 3% per property taxes.
Lastly for the three months ended September 30th 2022 rental expenses were down <unk>, 8% in Ontario, largely due to a utility refund in the quarter of approximately <unk> 2 million, which was a result of semi annual balancing at the central distribution gas hubs.
For the nine months ended September 32022, same property net operating income increased by three 2% as compared to the same period in the prior year.
Positive revenue growth in all provinces was offset by an increase in operating expenses largely the result of inflationary increases in costs.
For the province of Quebec year to date, NOI is flat, which is a considerable improvement from the 4% decline in Q2 2022.
Majority of this even year over year performance as a result of increased expenses driven by increased utility costs and property taxes. The increase in property taxes due to both an increase in property tax assessments as well as a positive tax appeal in 2021, which did not reoccur in 2022.
Slide 17 illustrates boardwalks mortgage maturity schedule, our mortgages are well staggered with approximately 95% of our mortgage balance carrying any change to the Canada mortgage and housing Corporation. This insurance remains in effect for the full amortization of the mortgage and in addition to carrying the government of Canada's backing.
Provides access to financing at rates lower than conventional mortgages with the current estimated five year and 10 year CME C rate of four 5% and four 3% respectively.
The current interest rates are above the trust maturing rates the trust maturity curve remains staggered reducing the renewal amount in any particular year. Despite increases in interest rates mortgage financing continues to be a low cost of capital available to the trust.
Lastly, the trust has an interest coverage of $2 98 in the current quarter.
Slide 18 summarizes our 2022 mortgage maturities to date, we have renewed our forward locked approximately 92% of our 2022 mortgage maturities as well as secured $245 8 million in new financing.
Current underwriting criteria in our most recent submission to CME C and our lenders has remained in line with our historically conservative estimates.
Moving to the right of the slide we provide a summary of boardwalks available liquidity.
<unk> is well positioned with approximately $33 million in cash and subsequently funded financings as well as an undrawn $196 million operating line.
This approximate 229 million in liquidity provides the trucks trust with a flexible financial position.
Slide 19 illustrates the trust estimated fair value of its investment properties, excluding adjustments for Ifr 16, which totaled $6 8 billion as at September 32022, as compared to $6 4 billion as at December 31, 2021, when excluding acquisitions of point 2 billion in capital to invest.
<unk> of <unk> 1 billion the remaining slight increase in overall fair value as a result of increases in market rents at select sites and communities as market fundamentals improve.
Current estimated fair value of approximately 199000 per apartment door remains well below replacement cost.
Moving to slide 20, and consultation with our external appraisers, the capitalization rates or cap rates used in determining Q3 2022 fair value were unchanged from both Q2 2022 in Q4 2021.
As it does every quarter. The trust will continue to review completed asset sales transactions and market reports to determine if adjustments to cap rates are necessary.
Certainly publish cap rate reports for both C. B R E and altice suggest that the cap rates being utilized by the trusts for calculating fair value are within their estimated ranges. In addition, the trust cap rates used in estimating fair value remained at a positive spread to interest rates.
Slide 21 provides a summary of the recycling of cash flow towards value add improvements.
To date, we have completed approximately 31% of total suite improvements, while aiming to complete 51% of our total portfolio common areas and there are many spaces by the end of fiscal 2022.
Our focus is to continue to deliver the best products optimizing our capital allocation for our value add program to our targeted resonate memory demographic. So we can continue to provide the most exceptional elevated experience at an affordable price.
The result of increased market demand exceptional value and appealing returns with sustainable market rent adjustments.
Slide 22 illustrates our stabilized renovation returned for Lakeview apartments, located in Calgary, Alberta, with a return of 20%, which exceeded our internal hurdle rate of 8%.
Our renovations continuing to garner positive resident member testimonials testimonials, driving referrals and higher occupancy I would now like to turn the call to Geoff close to highlight our recently completed development Jeff.
Thank you Lisa and thank you for the opportunity to highlight our successful delivery of the first tower of our landmark development in Brampton, Ontario on behalf of our teams on.
On slide 23, we are pleased to highlight that the first of our two tower development at 45 Railroad in Brampton, Ontario has been delivered on time and on budget, we cannot thank our partners Redwood properties and our development operations designed an entire team enough for their dedication and.
In delivering this project on time and on budget through the challenges that COVID-19 supply chain and construction strike presented throughout the construction period.
45 railroad located steps from.
Ramped in downtown go station.
The first tower features 176 units and received occupancy permit during the month of October as of today, we have leased 55 units or over 30% of the units at rental rates slightly above our original expectations. Our development teams continue to progress on construction.
<unk> of the second tower and are expected to deliver tower two in the fourth quarter of 2023.
Slide 24 provides an update to our development pipeline with the latest on aspire, our first development and Victoria excavation is currently underway at the site of 234 units located adjacent to our Aurora community, which remains fully occupied with strong rental demand.
For any units that become available.
I'd now like to pass the call over to James.
Thank you, Jeff and team for all the great work in delivering the first tower 45 railroad.
Starting on slide 25, we have successfully closed and integrated our previously announced acquisition of a recently built community known as the level in Calgary during this third quarter.
<unk> hundred 58 suite property is well located near the cell Calgary Health campus and in close proximity to our existing Auburn landing community, providing strong operating efficiencies.
As part of the acquisition the trust assumed existing an attractive medium term financing and as the newest asset in the boardwalk portfolio.
<unk> solid and accretive cash flow.
Slide 26 provides our stakeholders with our current and relative view on sources and uses of capital.
Our sources of capital, we believe that our growing internally generated cash flow and minimum distribution policy continues to represent the most attractive source of capital.
<unk> property mortgage financing has increased and costs from the beginning of the year. It continues to represent an attractive source on a relative basis.
These capital sources can be utilized to fund opportunities such as our value add capital improvement program and.
And investment in our own high quality portfolio through our normal course issuer bid strip.
Strategic and accretive acquisitions, and new development and under supply of housing markets.
In the third quarter Boardwalk purchase and canceled over 62000 trust units at an average price of $44 62.
Since the reintroduction of our N CIB in November of 2021 Boardwalk has invested $45 7 million in buybacks and continue to view this investment as an attractive use of proceeds from noncore asset sales.
It is our intention to renew our N. CIB later this month.
Our team will continue to update our view of capital sources and uses on a relative and regular basis.
Slide 27 highlights the exceptional value that boardwalks trust units represent with our current trading price, implying a value of approximately 166000 per apartment door.
This compares favorably to the fewer but substantive transactions that have occurred in the past year in the external market.
Our <unk> of $71 per trust unit equates to 199000 per apartment door and represents an exceptional opportunity relative to market pricing and remains well below the increasing cost of replacement.
On slide 28, boardwalks current trading price equates to an attractive five 2% cap rate on trailing NOI and provides a significant spread to the current cost of available mortgage capital and estimated cap rates in private markets.
Our strong leasing trends and NOI growth in our portfolio. This cap rate represents an attractive option for the trust to continue to invest in our own high quality portfolio.
Slide 29 provides a review and update of our 2022 expectations and guidance as.
As we move towards the end of the year, we are well positioned with high occupancy strong leasing momentum with significantly fewer incentives.
Our strong performance in the third quarter has aligned with the higher end of our initial expectations for the year and with the completion of over 90% of our mortgage renewals to date the trust as providing an update to our guidance estimates for the year with an increase to the bottom end of both our <unk> and NOI performance for the year.
Same property NOI and <unk> per unit are now anticipated to range between 3% to 5% and $3.08 to $3 15 per trust unit respectively.
Our boardwalk team is committed to leading and transparency and we'll continue to update our stakeholders in the event of any change in conditions that may materially impact our forecast are.
Our 2023 guidance and forecast will be shared with our fourth quarter results in February .
On Slide 30, our board of Trustees has confirmed our monthly cash distribution of $1 eight per trust unit on an annualized basis, which is an 8% increase from the same period a year ago and has been declared for the next four months as shown on this slide.
The trust continues to have an industry low payout ratio, providing significant cash flow reinvestment and positioning boardwalk with ample capital for growth.
As we continue to grow our free cash flow our distributions will also continue to grow alongside.
Lastly on slide 31, our third annual ESG report released earlier this year highlights and celebrates our team resident and community contributions to our collective environmental social and governance goals. We're proud to highlight our top a rating for public disclosure and share our improved 2022.
Crosby score of 70, our ESG report along with all our financial reports can be found on our website.
This concludes the formal portion of our presentation I would now like to open up the phone lines for questions David.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star key followed by the number one on your Touchtone phone, you'll hear its retail pump technology in your request questions will be taken in the order. They are received should you wish to withdraw your request. Please press. The star can you followed by the number two excuse me.
Speaker phone please lift your handset before pressing any keys or moment, while you assemble the queue.
We will take our first question from Jonathan Culture with TD Securities. Your line is open.
Thanks, Good afternoon.
First question just on.
Occupancy you guys are starting Q4 at a pretty good level.
What's kind of your expectation over over the winter period.
Jonathan its Sam <unk> and welcome thanks for joining us.
We're at today, 98% and so the first of the month is tricky for move ins because some of the apartments as turnover.
<unk> and vacancy reduce it can't be turned in 24 hours. So it takes a few days and as we progress into more of the middle of the month, our occupancy naturally rises most if not all of our vacancy its still in Edmonton, it's about a 3% and and dropping as well.
<unk> the last couple of months, we've ended up availability in Edmonton between one and 1.5% and so that's a leading indicator of what they can see physically will be going forward. So we're we're continuing to see higher occupancy trends over the winter months. This is what we.
Scene with strong apartment rental fundamentals back in 2013.
2012, very similar apartment rental.
Fundamentals during that period.
Jonathan It's James to Sam's comments, there, we are seeing lower turnover as well.
This month, if we look at turnover so far we're down about 40% versus this time last year for the month of November and our team is doing an amazing job with the rentals that we're getting already I mean, we're only 90 days into the month that were.
Halfway covered our turnover that we have for this month and so we are anticipating continued strength from an occupancy standpoint, we've already seen that to Sam's point I noticed on slide our occupancy slide there that the month, though.
October had dipped slightly we've already recovered that were back over 98% occupancy across our portfolio here today.
Okay.
Helpful and then I guess just.
Sticking with Edmonton.
A couple of things on it like the occupancy has grown significantly year over year, but the.
Year over year rental growth was still in the threes juice do you see that now with the growth that Edmonton is kind of I guess trailing Calgary by quite a few quarters here do we expect strong growth.
Year over year going forward.
Yes, Jonathan I think we're seeing that in slide 14 on our presentation really highlights that where we are seeing increasing and improving leasing spreads across our portfolio, but especially in Alberta.
As we've shared on prior calls.
Cadence on Calgary renewals and new leasing has been quite high as we've reduced incentives we are seeing our peers and competitors start to increase market rents as well in Calgary ourselves included and that's coming off of an exceptional base of affordability Edmonton is starting to see that similar trend as well, where we are seeing stronger in <unk>.
Center of reductions renewal and new leasing spreads are growing as you can see on slide 14, the public Internet listing site that is one of the only remaining public listing sites that.
Provide public information rental start see a show for the first time in many many months a positive.
Asking rent.
Increase in Edmonton.
It's pretty modest around five or 6%, depending whether it's one or two bedroom and so we're starting to see market wide and improvement in occupancy and we're leading it and as we usually do lead the occupancy and the rest of the market follows follows through so we're seeing a.
Overall, Edmonton apartment market increase in occupancy, we have a great amazing very competitive friendly competitive team and Edmonton.
In Edmonton wants to be number one not just in sports, but in occupancy and NOI performance as well.
Okay, and then just lastly, I guess on Edmonton, the operating costs were up 8% in the quarter and you guys talked about both.
Property taxes being higher in the the operating costs involved in getting these to Bacon C up which I guess are more onetime in nature, how should we think about the split between those two with the majority of the two.
Hi, Jonathan it's Lisa.
Majority would've come from the property tax side. It was it was a sort of a healthier increase compared to skip compared to Q2, 2022 and wheel and Youll see a similar property tax number as you go into Q4 as I did say overall property taxes, we're expecting it to be about 3% overall, we will see some.
The V Q2, specifically you will see wages and salaries for Edmonton go down as we move into it well as you saw in Q3 and moving into Q4.
Okay. Thanks, I'll turn it back.
Thank you Jonathan.
Ladies and gentlemen, as a reminder to ask a question prestige Starkey followed by the number one on your telephone keypad and next we'll go to Mike <unk> with BMO capital markets. Your line is open.
Thanks for turning it over operator.
Afternoon, everyone at least in Ontario.
Lisa could you just clarify that that 3% overall increase that youre talking about on the property tax side is that is that an annual amount is it for Edmonton only or for the entire portfolio.
Annual amount for the whole portfolio.
On an absolute basis.
That's correct.
Okay got you thanks for that.
<unk>.
Just looking at slide 14, which shows the great progress you guys are making on the.
On the increase in net effective rents.
Just curious you seem to have on the renewal side kind of plateaued out at around 5% and I'm wondering how much of that is self imposed versus versus market, where are you where you are targeting.
That was higher occupancy as you head into 2023.
Hey, Mike It's James welcome back and congratulations on the on the new role. Thank you.
Certainly on the renewal side, Mike look.
As we've always been we want and we will continue to be flexible with our resident remembers always and so that average of 5% has a wide distribution dependent on community dependent on residents circumstance I think certainly there's opportunity for us to continue to optimize that as you've seen.
And you've seen steady growth with that renewal spreads certainly not quite the same cadence as new leasing. However, we would anticipate both renewals and new leasing spreads to continue to move up.
Pardon me trend upwards, especially with our Edmonton portfolio as Sam was talking about earlier now getting into that position, where you incentives are rapidly declining we're seeing incentives decline year over year by 20% as you saw on slide 13, I believe it was and so both renewal and new leasing spreads we do anticipate.
For our non price controlled markets to continue to trend upwards.
Michael Sam.
And our.
Hey, Michael Congratulations again.
In our markets in Calgary, we've got 99% occupancy.
We're seeing higher renewal and reductions in incentives almost no no renewals in incentives so our numbers are.
Closer.
To the high single digit as we're seeing the same thing in Saskatoon. So we'd expect the same as Edmonton overall apartment market moved to a similar high occupancy.
That that we'll see this continued upward movement in renewal spreads as well.
Got it and which will increase the whole spread.
So net net that is.
Maybe in line to slightly better in those other markets you mentioned and then catching up in Edmonton.
Correct, and given Edmonton, approximately 33% of our portfolio.
It does weigh the renewal rate down at the moment and picking up.
Our team in Edmonton.
<unk> is a super Super aware and great team.
We are picking and continuing to pick up steam.
And reducing incentives and discounts.
Everywhere.
And last for me before I turn it back just on aspire.
It may be in the MD&A and I haven't had a chance to get there, but can you remind us when the construction completion of that asset is slated for.
Hi, Mike It's Jeff were looking at a Q4 24 at this time.
<unk>.
Okay, great. Thanks, so much.
Thanks, Mike.
Next we'll go to.
Mario <unk> with Scotia Bank. Your line is now open.
Hi.
Hello, everyone.
Just maybe a couple of questions from me as well sticking to Edmonton.
Firstly in terms of the occupancy.
You mentioned, it's spoken with 97%.
What's your best guess in terms of where.
Market occupancy is today I think you mentioned you are leading the market in terms of occupancy gains where with the broader market would be relative to where you were.
It's usually up.
Point or two.
Behind.
So broader.
Let's say, 96%.
It's improving.
Quickly and.
Through the winter months, which is very different than what we've seen in the last five six years. So the characteristics of the of the apartment rental market in Edmonton.
Are very similar to 2012 13 14.
Yeah.
Got it and then in terms of coming back to maybe Jonathan's question in terms of.
The desire and ability to.
Kris the rental growth rental rate growth to Edmonton is.
Is it a function of the broader market.
Which is 100 to 200 basis points pool, you going back to 90 798 or is it a function of boardwalk going to 98%. When we started seeing the increased rent growth.
It's both and the broader market is a big factor.
Overall market and the good news in Alberta, and Saskatchewan in Edmonton as Theres no.
Price control on rent. So there continues to be construction and will be so the good news for our renters as competition is our renters best brand and all of our best brands to continue to ensure affordability and competitiveness and so we will continue to see hell.
<unk> gains because the department rental rates are far below the rates required for new construction at around 1200 40, some dollars average occupied rents.
That that's a level that's far below and very affordable.
Given our household income renter household incomes.
Our.
Approximately.
Between 20, and 25% of our renters.
Income and so so there's there's high affordability in place and and again the keyword is flexibility.
And we.
We're seeing.
Higher single digit.
Growth rates that.
That we believe are more sustainable and win win for the community providers to offset the inflationary expenses and interest expenses that we're seeing and still provide great affordability, given where approximately 25% below the consumer price index.
<unk> back to March it is our slide reflects 2016, so they're super high affordability there.
There's something for everyone here and that's why we believe Alberta, and Saskatchewan are the best apartment rental places to be for both.
Renters and housing providers.
Just as a follow up.
You mentioned commitment to feels like Buck in 2012 2013.
Good times.
That will hurt the broader market.
Subsequent years was new supply coming on board.
How confident do you feel about won't be an issue again this time around acknowledging the wide gap between in place rents and required rents on new construction.
What's the visibility there and are you are you holding back a little bit on that.
Rent growth because of what happened in 2012 2013 in terms of new supply coming on.
The biggest difference this time around is the app sense.
Condominiums that were planned proposed and many foundations, where Doug and toward and so back in 2013 14, there was.
Much bigger.
Build.
Condominiums under construction, which converted to purpose built rentals when the condominium market correct. It and so we're not seeing that inventory and that construction right. Now we are seeing some cranes and some developers that are always <unk>.
<unk>, there's some developers that continue to develop there and really prime locations. They are very nimble, they're very targeted and so we continue to see new construction, because there's always demand for brand new nice well located multifamily affordable.
<unk> rental product and compared to rents and other cities major cities. These brand newly built apartment communities are very affordable as well and so it's a.
A much more balanced market is what we're seeing right now we are seeing strength on the demand side as well Mario as we look at we all have heard about the increase to migration policies. We are seeing the growth in interventional migration and for all all reasons that we've talked about on past calls I mean, just turn on the radio if youre in Ontario.
Sorry about that and I think you know, we're certainly continuing to see that that flight to affordability that flight to lifestyle that we're seeing in Alberta with a number of residents new residents within our portfolio in Alberta, We've moved here from Ontario, BC and Thats a trend.
Our team continues to see carry forward here as we move through the winter and into 2023 are great Google's search will be Mario Alberta economic dashboard.
And and zeroing in on the in migration and the migration statistics on our Alberta government published dashboards, we have never seen in decades, the amount of in migration into Alberta ever its record high in migration.
And it's great news, because there's there's affordable housing.
The Sunniest and Windiest place in Canada is Alberta, we produce.
The most.
Our solar and wind it's it truly is a great place to live and there's not a commercial Mario but it truly is a great place to live in and more and more of finding out about it.
Well.
I'm, an indie music fan in.
The advertising twice a day on.
PD one in Toronto.
The message is getting out there in Ontario for sure.
My My last question just on the.
The incentives in Edmonton.
It looks like that could have an average of 108.
Sweet.
Zero in lot of places in more than one way and others.
Can you give us a sense of what percentage.
The buildings today, having sentence and Edmonton, how thats changed in the past nine months.
Hey, Mario it's James I think the best indication is and you can see it in the consolidated figure in terms of quarterly incentives year over year right. So we've seen incentives declined 20% versus the same period last year.
Estimate in terms of how many of our of our residents in Edmonton continue to have an incentive likely.
Rough numbers somewhere between half to 65% we are seeing those incentives decline on our on our renewals, we're not having to use incentives in Maine.
Many of our new leases here today, and so we are seeing that decline quite rapidly.
Mario we get weekly updates from all our leaders and on the updates from new rentals, it's really hard to find an update and a community of ours that gives the new incentive today in Edmonton and we high Fived everybody.
Every week has the reports come in weekly and we see it everyday as well our twice weekly we get.
[noise] dashboards on our.
New rentals statistics, and so it's really rare to see incentives being used today in Edmonton.
Thanks for the color.
Thank you Mario.
And that concludes today's question and answer session I will now turn the call back over to Sam calling us for any additional or closing remarks.
Thank you so much David as always if there are any further questions or comments. Please do not hesitate to contact us. This week, we remember and honor the huge sacrifice of our veterans lest we never forget.
With gratitude, we'd like to thank our extraordinary team loyal residents seem H C. Our lenders our unit holders and all our stakeholders. It really is all about our people whose huge shoulders, we stand and as leaders. We continue to do everything we can to support continued growth.
An extraordinary we really can't bank, our extraordinary team and great leaders enough. We're pleased with our improving results on a foundation of exceptional value. We continue to provide our resident members our investors and all our stakeholders. Our home is much more than a place or a location.
Our future is family where love always lips.
It can be more important when choosing where to call. Thank you again, everyone for joining us This morning, God bless us and grant us all piece.
Ladies and gentlemen that concludes the conference call for today, we thank you for your participation you may now disconnect.
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