Armada Hoffler Properties, Inc. (NYSE:AHH) Q3 2023 Earnings Call Transcript

Unidentified Analyst: Actually, just one follow-up on that point. You said you’re using AI to help drive the pricing. I guess of that platform, how much of the like inputs are you — like do you have control over? Or is this outsourced?

Shawn Tibbetts: We use a third-party platform. We can control kind of our desired occupancy level, and it uses market inputs that we do not control that are organic, what’s happening in the broader market, broader submarket to be more specific to kind of enhance where does the pricing need to be to hit this occupancy target. We can certainly ratchet that up, but I would imagine there’s going to be a trade-off at some inflection point in this current market environment between what rent you can achieve and what occupancy you can achieve. And we feel like in the mid-90s is where we want to shoot for. We do run sensitivity on that. We’re taking a look at that now and trying to understand what’s the best kind of mousetrap — how to best set the mousetrap, maybe it’s a better way to say it.

Operator: There appear to be no further questions. I’ll return the conference back to the speakers.

Louis Haddad: Thanks very much for your time and attention this morning. We will — we hope to have further announcements between now and the end of the year, and everybody, have a great day. Take care.

Operator: This does conclude today’s conference call. Thank you for participating. You may all now disconnect your lines.