Investors Real Estate Trust (NYSE:IRET) Q1 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 11:00 am ET


Investors Real Estate Trust (NYSE:IRET) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Investors Real Estate Trust First Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mark Decker, Chief Executive Officer. Please go ahead.

Mark O. Decker Jr.

Thanks, Gary, and good morning, all. IRET's Form 10-Q for the quarter ending March 31, 2020 was filed with the SEC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure package have been posted on our website at and filed yesterday on Form 8-K. Before we begin our remarks this morning, I must remind you that during the call, we will discuss our business outlook, and we'll be making certain forward-looking statements about future events based on current expectations and assumptions. These statements are subject to risks and uncertainties discussed in our release and Form 10-Q and in other recent filings with the SEC.

With respect to non-GAAP measures we used on this call, including pro forma measures, please refer to our earnings supplement for a reconciliation to GAAP, the reasons management uses these non-GAAP measures and the assumptions used with respect to any pro forma measures and their inherent limitations. Any forward-looking statements made on today's call represent management's current opinions and the company assumes no obligation to update or supplement these statements that become untrue due to subsequent events. With me this morning is Anne Olson, our Chief Operating Officer; and John Kirchmann, our Chief Financial Officer.

I know a number of our team members are listening into this call and I want to start by thanking them for all their great work, particularly over these past few months. We're very fortunate and grateful to be in a business that provides one of life's essentials, and it's been truly inspiring to see how our team has come together to take care of our residents and each other. Our mission of providing great homes has never been more important. Thank you, team and please keep it up.

IRET came into the COVID-19 crisis better prepared than at any moment in our company's history. And our first quarter was well ahead of our own expectations, driven by strong revenue growth and a milder winter. As we've been discussing for three years now, our goal is to build a company with durable earnings power that possesses the intellectual and financial capital to successfully navigate and grow in any environment. The work we've done on our portfolio, balance sheet, and operations provides us with a high-quality, value-oriented portfolio that's weathering this storm very well.

Our geography is also a real differentiator in this time, and you can see this in our April collections, which were 97.4%, plus 1% deferred, and in May, which through May 11th is tracking at over 98% of historical averages. We were proactive and moved quickly to address all aspects of COVID-19, and we'll continue to do our best to work with our residents through this economic and health crisis. Here at IRET, we're well positioned and optimistic about