The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: First question, can you just talk about what you're seeing in terms of in-migration? In some of your markets, your kind of larger Sunbelt markets,
obviously, COVID has kind of been the great accelerator for that. And just wondering if your people on the ground are telling you that they continue
to see that in earnest, if it's accelerating, if it's kind of steady. Any commentary on kind of like where that's coming from and what markets are the
biggest beneficiaries?
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: Okay. The other one for me is maybe bigger picture, talked about cap rates coming down. I mean we've talked to brokers pretty much in all of your
markets and sub-4 is like the name of the game. And when you think about your portfolio, it's a great aggregated, diversified portfolio, ridiculously
low leverage compared to anything private, a lot of growth avenues there. Is there -- I mean, do you think that there should be a rerating? Or is it
fair to say that cap rates on the public side need to come down or they're justified being lower? And if nothing else, the spread between coastal
and Sunbelt should be compressed at least over the next several years not to cycle?
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: Yes. Well, I was saying, could you just humor us and what does the 3.5% cap translate into?
Question: Bradley Barrett Heffern - RBC Capital Markets, Research Division - Analyst
: I know we're at the top of the hour, so I'll just keep it to one. I was wondering if you could just talk through Houston. I was a little surprised to see
the sequential rent growth down almost 4%. I know obviously, COVID didn't necessarily break that market and COVID leaving isn't going to fix it.
But is there anything that you're seeing there that gives you optimism as we go forward, whether it's the energy recovery or supply or anything
else?
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