Elme Communities (NYSE:ELME) Q4 2022 Earnings Call Transcript

Anthony Paolone: Thank you and good morning, and congrats as well to Steve and Steve. So, first question is just in terms of your internalization, when you did the transformation of the company, you talked about going into multiple new markets. And so you are in Georgia now, if you go to some other places on your target list, will the internalization be able to handle those, or will you have to still use some third-parties before bringing it in?

Paul McDermott: Tony, this is Paul. The internalization will be able to handle those. We have already planned for that. And I think as we alluded to when we rolled out our diversification strategy, we have always planned to both geographically diversify and obviously, that will be accompanied by diversified management. And so we plan on having boots on the ground in the major markets that we expand into.

Anthony Paolone: Okay, got it. And then just second one. You had mentioned about 600 unit renovations for €˜23. Can you just remind us about how much you think you will spend on those? And also, any color on just recurring CapEx for this year, either per unit or in total?

Steve Riffee: Yes. Tony, this is Steve. For the 600 units, we are expecting about $9 million of spend related to that. And then I am sorry, can you say the second part? The recurring CapEx, so we have looked at the recurring CapEx, and we see it as 5% of our NOI, which again is for €“ on the multifamily side, which is significantly less than the 20% numbers that we were seeing when we have commercial.

Anthony Paolone: Okay. Great. Thank you.

Operator: And if there are no further questions, I would like to turn the floor back over to management for any closing comments.

Paul McDermott: Thank you. Again, I would like to thank everyone for your time and interest today, and we look forward to speaking with many of you over the next several weeks. Thank you.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.