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: Alan Robert Peterson - Green Street Advisors, LLC, Research Division - Analyst
: Tiffany, just a question on the Atlanta market. I know that you touched on addictions there. Total portfolio occupancy of 91.6% at the end of the
quarter. Is that the floor for occupancy due to bad debt issues? Or are you guys still working through additional or incremental bad debt issues
within the market?
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OCTOBER 27, 2023 / 2:00PM, ELME.N - Q3 2023 Elme Communities Earnings Call
Question: Alan Robert Peterson - Green Street Advisors, LLC, Research Division - Analyst
: So out of that 91.6%, how many more units or what percentage of the portfolio is still delinquent within Atlanta?
Question: Alan Robert Peterson - Green Street Advisors, LLC, Research Division - Analyst
: Understood. Maybe just shifting over to the acquisition. Paul, I know that you mentioned that you guys are looking at a 6% yield. Is that 6% yield
on a year 1 basis? And I know that you talked about some of the renovation upside. And it sounds like there's some potential densification or even
expansion over the next, call it, 24 months at that property. How are you guys thinking about it from call it, a year 3 and beyond yield standpoint
in terms of the underwriting there?
Question: Alan Robert Peterson - Green Street Advisors, LLC, Research Division - Analyst
: I appreciate those comments. Maybe, Steve, just on the 6% yield comments and the accretion there, you guys drew down the line, and I'm assuming
the lines and, call it, the mid-6% range in terms of a funding source. Is there a longer-term funding plan that gets you to that kind of accretion mark
for Druid Hills?
Question: Alan Robert Peterson - Green Street Advisors, LLC, Research Division - Analyst
: All right. Maybe one last one for me in terms of forward external growth plans. I understand the comments on recycling out of higher CapEx assets
into geographic expansion. Across the best use of funds today, would it be to continue to scale the platform into geographic expansion or potentially
look at buyback opportunities considering where the stock is trading at?
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