Good day. Welcome to the Centerspace fourth quarter earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one. Please note that this event is being recorded. I would now like to turn the conference over to Mark Decker, Chief Executive Officer. Please go ahead, sir. Thank you, operator, and good morning, everyone. As you may know, we are now doing business as Centerspace and trading on the New York Stock Exchange as CSR. The Form 10-K for the full year 2020 was filed with the SEC yesterday after the market closed. Our earnings release and supplemental disclosure package have been posted on our website at centerspacehomes.com and filed yesterday on Form 8-K. Before we begin our remarks this morning, I need to remind you that during the call, we will discuss our business outlook and will 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 in Form 10-K and in other recent filings with the SEC. With respect to non-GAAP measures we use 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. I'm Mark Decker, Centerspace's CEO, and with me this morning is Anne Olson, our Chief Operating Officer, and John Kirchmann, our Chief Financial Officer. I'll start with a quick explanation about the name change. Lots of people have asked, and the rationale was simple. We changed our business. We were a business that for 50 years was called Investors Real Estate Trust or I-R-E-T or IRET or IRET. We built a heritage that we're proud of. However, in addition to having a name few could agree on, that business was one of a diversified landlord that owned apartments, among many other things. Today, we are Centerspace. We are taking the 50 years of proud heritage with us. We are now a customer and team-centric housing company. In fact, we've been Centerspace for a few years. The name change was a good opportunity to close the chapter on our transition and rally around our mission with a name we felt passionate about. As I've joked to anyone who will listen, no one needs any coaching on how to say or spell Centerspace. Simplicity is powerful, and on balance, we're confident this helps us attract talent, which is so important. We had this name approved and ready in May, but held back in light of COVID, social unrest, and all the other pain and difficulty of 2020. As the year came to a close, however, it felt great to end with a real positive. I know it resonated with our team, and they more than earned something fun after a banner year. We kept our customers and team safe, went above and beyond to be flexible and proactive, and delivered stellar financial results. I couldn't be more honored to be a part of this team. I'm especially excited that there are nearly 100 team members that are new owners of our business following last week's inaugural leadership conference, and I'm sure a few are on this call. Congrats to those fellow owners and partners. I know that people are eager to talk about the future, as I am, but I'd like to take a minute to recall some of last year's highlights because 2020 was a year where our company demonstrated real resilience and continued improvement. In 2020, Centerspace was added to the S&P SmallCap 600. We grew our same-store NOI 1.8%, which is among the best of the public apartment companies. We grew our year-over-year core FFO per share by 1.6%. We exited some of our oldest and most inefficient assets at excellent prices and added high-quality assets in Minneapolis and Denver, growing our expected exposure to these focus markets for 2021 to over 40% of our net operating income. We also completed $14 million of value add, exceeding our 2020 budget while hitting our underwriting targets. Lastly, while it closed in early January, the work was done in 2020 to allow us to add another asset, Union Pointe Apartment Homes in Longmont, Colorado, bringing us to five assets in Denver. We believe Denver remains well-positioned to benefit from shifts in how we all live and work now and in the future. In connection with Union Pointe, we priced 9.5-year money at 2.7%, a spread of 170 basis points over the 10-year, and among the best executions for a direct private placement across the real estate spectrum, which is a strong endorsement of the progress we continue to make as a corporate credit. All of this occurred against the backdrop of COVID, with a lean team that made sacrifices all year long to make great homes for our residents and investors' capital, which takes us to the present. In 2021, we forecast lower revenue growth as the pandemic chills our pricing power through the fall, and we return to normal expense levels. In this time of transition for the economy from lockdown to a return to some normalcy, we are going to invest and position our company for the future. Most importantly, we're embarking this year on work that will enable us to revamp our operating systems as we build on our capabilities to codify, build accountability, and consistently deliver a great customer experience as efficiently as possible. We believe the investments we make now will bear fruit as we continue to grow and as fundamentals improve, which we expect to occur this fall and beyond. We may prove conservative in our view of revenues. I hope that's the case, but it's out of our control. Of course, the upside scenario is always the easiest one to figure out. The downside case is the one we need to prepare for. We are setting the table for the years ahead, and we're confident that our operations, balance sheet, and capital allocation discipline will position us well, and the investments will be worth it. We've talked a lot over the years about our North Star being the growth of distributable cash flow. While the guidance that John's going to speak to in a moment produces lower year-over-year core FFO, it amounts to roughly flat distributable cash flow per share and positions us for growth in 2022 and beyond, which we believe is the most important thing. Lastly, I'd like to offer some brief thoughts on the opportunities and our outlook for the investment market. As you see, we expect modest acquisitions funded with capital recycled from dispositions in our ATM. We'd certainly like to be more active if possible, and as always, our motivations are improving our portfolio's quality as measured by geography, margins, and growth profile. The rest of the story is that we need to make investments that are accretive to cash flow per share and neutral or better to our balance sheet metrics. Pricing continues to favor sellers as capital seeks increasing exposure to sheds and beds. We always have a robust pipeline of opportunities, and we find that today Nashville is the most aggressively priced, with Minneapolis and Denver just behind and in relative parity to one another. This pricing is driven by a combination of factors, most notably market size and liquidity, growth assumptions, and in all cases, less product for sale in larger coastal markets, which puts more marginal dollars in our markets. The cost of debt capital also continues to accommodate long-term investors' bullishness, and apartments nationally remain at historic wides to the 10-year. I'm happy to discuss more of that in Q&A, but for now, I'd like to turn things over to our Chief Operating Officer, Anne Olson. Thank you, Mark, and good morning. Like most people, our team was happy to put 2020 behind us and is cautiously looking forward to the opportunities 2021 will bring. 2020 was a year that was disrupted by working from home, quarantine, regulations, closures, cautious reopenings, cleaning and more cleaning, and a myriad of operational changes from virtual leasing to facilitating rental assistance for our residents financially impacted by the pandemic. In spite of that, we were able to perform well by focusing on the basics of the business, holding occupancy steady to optimize our revenue, closely monitoring our expenses, and focusing on collections. In the fourth quarter, our weighted average occupancy increased 60 basis points over the third quarter 2020 and 1% over fourth quarter 2019. Our weighted average occupancy in 2020 of 98% was a driver of our 2.1% revenue increase for 2020 over 2019, and together with particularly strong revenue performance in our Billings and Rapid City markets, as well as in Omaha and across North Dakota. As we saw developing over the course of the year, the headline of our portfolio performance was our smaller markets. We saw significant year-over-year NOI gains in these markets, while our larger markets like Minneapolis and Denver, which faced more regulation, longer eviction moratoriums, and were impacted by higher unemployment rates, were able to maintain strong occupancy but saw rental rates decline. In the fourth quarter, we realized a blended decrease of 70 basis points on new and renewal leases. Just 16% of our leases expired in the fourth quarter, which highlights the large opportunity we have for the 2021 leasing season. In 2020, we increased our disclosure as we closely monitored collections and bad debt. For the fourth quarter, we realized strong collections with 98.6% of expected residential revenue collected. January collections maintained that trend with 98.7% expected rental revenue collected. Our fourth quarter bad debt was 1.4% of revenue compared to 30 basis points in the same period in 2019. In 2020, we deferred a total of $301,000 of rental revenue, and currently $56,000 of that deferred amount remains outstanding. We expect to see our bad debt returning to historical norms by the end of 2021. Despite the negative impact the pandemic had on our revenues, we were able to hold our same store NOI margin to a decline of just 20 basis points in 2020 compared to 2019. While our NOI margin was significantly impacted by our non-controllable expenses, particularly taxes and insurance, our growth margin increased year-over-year by 1.4% - 3.9%. As we look ahead to 2021, we are expecting wage pressure, higher healthcare, and increasing insurance costs to negatively affect our expenses. Coupled with continued uncertainty about revenue growth, our outlook reflects the challenges we face. There are bright spots, momentum in our value add, strong occupancy, increasing traffic levels year-over-year, and the balance we have in our portfolio across small and large markets and across product types. We will do what we can to continue our Rise by Five efforts that have been characterized by revenue optimization, expense control, and strategic disposition and acquisition activity. In the fourth quarter, one of our initiatives drove a one-time increase in our revenue of $450,000 as we shortened our RUBS billing cycle in connection with a conversion to a new RUBS provider. Our value add common area and unit renovations programs also had a strong fourth quarter. With 81 units renovated and significant progress on common area renovations, we are seeing the increased revenue contribute to our positive results in Minneapolis and Omaha. Particularly in Minneapolis, the renovation projects at two of our suburban assets were able to offset the declining rates we saw in our urban portfolio. We're going to leverage what we learned in 2020 as we seek to maintain and expand the efficiencies that we found. We're going to live our mantra of better every day by striving for constant improvement and through the little things we do each day that enhance the lives of our residents and fellow team members. Our new normal is going to be better every day. While our economic forecast contains a lot of uncertainty, we have demonstrated that we will control what we can for the best possible outcome given the circumstances we face. I'm continually inspired by and grateful for our teams across our regions and in our support offices. Now I'll ask John to discuss our overall financial results. Thank you, Anne. Last night, we reported core FFO for the 12-month period ending December 30, 2020, of $3.78 per diluted share, an increase of $0.06 or 1.6% from the prior year. For the quarter ending December 31st, 2020, core FFO was $1.02 per diluted share, an increase of $0.06 or 6.3% from the prior year. The increase in full-year core FFO is primarily due to lower interest, G&A, and property management expenses, partially offset by lower NOI due to dispositions as well as the impact of COVID-19 financial recession, reducing same-store NOI growth. Looking at general and administrative expenses, total G&A was $13.4 million for the year, a 7% decrease from the prior year. The decrease is primarily from the $720,000 of lower compensation costs driven by open positions left unfilled, $280,000 from legal costs related to our successful pursuit of a construction defect claim in the prior year, and a $620,000 reduction in travel, consulting, and other costs due to the COVID-19 pandemic. Offsetting these decreases was an increase of $400,000 from non-recurring costs related to our December 2020 rebranding at Centerspace. Property management expense was $5.8 million for the full year, a decrease of 6.2%, primarily driven by lower compensation costs due to unfilled positions and a reduction in travel and advertising. Moving to capital expenditures as presented on page S-15 of our supplemental, full year same-store CapEx was $10.7 million, an increase of $2.2 million from the year ending December 31st, 2019. Full-year same-store CapEx was $1,008 per unit. The increase in CapEx was primarily due to $750,000 for replacement of a roof damaged by hail and the acceleration of capital costs related to assets undergoing value add renovation. Looking at value add capital, which is also presented on page S-15 of the supplemental, we increased value add capital spend $8.9 million - $13.9 million for 2020, reflecting our continued expansion of the value add program since its 2018 reboot. Turning to our balance sheet, as of December 31st, 2020, we had $97.5 million of total liquidity, including $97.1 million available on our line of credit. During 2020, we disposed of four apartment communities in Grand Forks, North Dakota, one commercial property, and one parcel of unimproved land for a total sales price of $44 million. Proceeds from these sales were used to fund the acquisition of Parkhouse Apartment Homes. During the 12-month period ending December 31, 2020, we repurchased and retired approximately 237,000 Series C preferred shares for an aggregate cost of $5.6 million. The yield to call on these shares was 10%. We also issued 829,000 common shares under the ATM program in 2020 at a net average price of $71.39 per share for total proceeds of approximately $59 million. In January 2021, we amended and expanded our note purchase private shelf agreement with Prudential to increase the aggregate amount available from $150 million - $225 million and issued $50 million in unsecured senior notes due June 6, 2030, at a rate of 2.7%. Under the amended shelf agreement, we have $50 million of capacity remaining. We believe the expansion of this shelf facility and pricing of the January note further demonstrates our ability to access all forms of capital, including investment-grade pricing on new financings. Looking to our 2021 financial outlook as detailed on S-16 of our supplemental, we expect same-store NOI to decrease by 0.5%-3.5% in 2021. The decrease in NOI reflects expected 2021 same-store revenue to come in between a 0.5% decrease and a 3.0% increase, with same-store operating expenses increasing between 4%-7.5%. We expect revenue increases to come from rent growth and other income initiatives offset by lower occupancy. Impacting same-store expense growth is an estimated increase in non-controllable expenses from increased real estate taxes and continued pressure on insurance costs, with 2021 premiums increasing 15% over 2020. We continue to see pressure on insurance premiums as carriers exit the market, though we expect the market to stabilize somewhat in time for our 2022 policy renewals. On the controllable side of operating expenses, we are projecting that expenses will return to pre-pandemic levels. This forecast is impacted by the belief we will not see widespread lockdowns, including the shutdown of common area facilities in our markets during 2021. As a result, we're expecting a $1 million increase in common area repair and maintenance costs. In addition, though we have institutionalized some of the lessons in cost savings from the pandemic, we see pressures on compensation, including healthcare and other benefits, and PPE costs for operating our communities safely. On compensation costs, we see increasing wage pressure in our markets despite the recession, and we expect that to continue with 2021 same-store compensation costs increasing nearly 4% as we respond to wage inflation and experience higher healthcare costs as utilization levels return to pre-pandemic levels. Now looking towards general and administrative and property management expenses, we're expecting the combined cost to increase 14%-23% for 2021, which includes an estimated $1.1 million for non-recurring technology implementation costs. Compensation costs are expected to increase $1.2 million as a result of filling open positions to support our 2021 tech initiatives, as well as $850,000 in higher long-term incentive plan costs. Offsetting these increases is a decrease of $400,000 for non-recurring rebranding costs that were incurred in 2020. The non-recurring tech implementation costs are added back for purposes of core FFO. Looking at same-store capital expenditures for 2021, costs are expected to range from $912-$1,012 per home, which includes $1.2 million for roof replacements for assets damaged by wind and hailstorm in 2020. Value add expenditures are expected to be $15 million-$20 million as we continue to develop our value add pipeline. On the investment front, we assume investments between $145 million-$170 million, which includes the January acquisition of Union Pointe. Anticipated disposition activity ranges from $55 million-$75 million, with the proceeds used to fund the Union Pointe acquisition. We plan to continue being active with our equity issuances under our ATM with an estimated $50 million-$70 million of net proceeds expected in 2021. 2020 was a challenging year, but we could not be more pleased with the efforts our team made to overcome all the obstacles and deliver top-performing results. 2021 is another challenge, but as a team, we are focused on delivering strong operating results, improving the balance sheet, expanding into our target markets, all while investing to create a best-in-class operating platform. I would like to thank our team members who dared to win over the last year and who work to make better every days for our residents. With that, operator, I turn it back over to you for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble the roster. Our first question today will come from Gaurav Mehta with National Securities. Please go ahead. Yeah, thanks. Good morning. First question on the expenses. I was hoping if you could provide some more color on the technology investments you're planning to make this year. Morning, Gaurav. I'll have Anne take that, please. Yes. Good morning. The technology investments really range from infrastructure investments into our core operating platforms, like our accounting system, to moving our platforms onto what we call a modern digital workplace with Microsoft 365 and use of Microsoft Teams. It's a phased approach, and the investments will happen over three years. We do expect to gain some good efficiencies and better reporting and data that we can use to make more data-driven decisions. We are expecting a good return on that investment over time, and this year is just the first stepping stone. We have started the implementation and our first implementation, which is our modern digital workplace, and we're moving into our second implementation, which is the deployment of the Yardi Stack of products. Okay. Second question on the investment guidance for 2021. I think in your prepared remarks, you talked about aggressive pricing in Nashville and Denver and Minneapolis as well. Maybe talk about what kind of acquisition opportunities you're seeing in the market and, I guess, in terms of market, are you expecting to deploy more capital in Denver given that Nashville remains aggressive? Yeah. Great question. The real honest answer is we're not sure. We'll have to see what comes our way. What we're seeing is that, generally speaking, older assets with lots of capitals are being priced pretty close to newer assets that have less capital needs. That tilts us towards wanting to buy newer assets with more modern systems and just less capital right in front of us. In general, we're looking at newer product wherever we can find it. Union Pointe is a great example. That asset was delivered about now probably 15 or 16 months ago and essentially stabilized during COVID. In our mind, an opportunity to do better when things get better just in the overall economy. Listen, if everything is equal, we'll be putting capital in Nashville. If things aren't equal, if the Nashville's off the table and everything's equal between the Twin Cities and Denver, we're probably putting capital in Denver. We're looking in the Twin Cities as well. I wouldn't say that we're way wide of market. It's easy to get behind how these help our portfolio overall. It's harder to figure how they add value in the very near term. When someone wins one of these assets, we don't think they're crazy. They just don't have to report quarterly numbers. I think they're making a good bet. We think the bet still makes sense on the actual market. Hopefully we'll find a way to connect on some things that make sense for us kind of on both fronts. Good for the portfolio, good for the shareholders in the measurable medium term. Okay. Thank you. That's all I had. Thanks, Gaurav. Our next question will come from John Kim with BMO Capital Markets. Please go ahead. Thank you. It looks like you lost some momentum on the blended lease rates in the last couple of months of the quarter. Can you just share what the new and renewal rates were on that 70 basis point decline in the quarter, and also what the blended lease growth rate was in January? Yeah. Good morning, John. Anne, please go ahead. Yeah. Hi, John. Our new leases in the fourth quarter were down 3.6%. Our renewals have held strong. They were up 2.3%, that is a blended 70 basis point decline. Again, that was about 16% of our leases expire in the fourth quarter, a fairly small sample set. Even smaller sample is our January leasing, which is only about 3% of our portfolio. We had really strong renewals at 3.6%. Our new leasing remained about steady at -3.5% blended for a -1.5% in January. Just to tack onto that, John, I think when we look at this year, I hope this was evident in our prepared remarks, but we're not forecasting a lot of momentum in what is the spring leasing season where we do a lot of our work. We're hoping we're conservative about that, and if the trends we just went through held, which year-over-year felt pretty good both in the fourth quarter and January, we might be in better shape than we're planning, but that's the big question. On that new lease rate, how much of that is concessions versus the face rate change? Yeah, not much at all. We really tried to avoid concessions and look at the effective rent in our systems. Those concessions can kind of skew how you look at comps. There's very little concessions in those numbers. Okay. Mark, you just mentioned on that answer that you're not projecting a lot of momentum, and in your prepared remarks, you also discussed being prepared for the downside scenario in revenue. Can you just elaborate on why you're being cautious? Is this supply risk or the eviction moratoriums in some of your markets, or are there other factors? Yeah. Anne, do you want to start? We use data from CoStar and Axiometrics and other advisors to kind of help us watch what the trends are and project into the future. Most of those resources, particularly through the fall and even into the winter months when we are doing our budgeting and forecasting for next year, we're projecting flat or declining revenue until the third quarter. We follow those trends, not exactly. We took it and extrapolated it onto our experience with our portfolio and how we've outperformed those projections in the past. That really led us to our conclusion that we were going to be conservative on revenue and start ramping up that revenue once we hit the third quarter. As we've discussed, by the time we get to the third quarter, the majority of our leases have rolled. That's really what's impacting it, is our exposure to the second quarter and the beginning of third quarter is really pretty strong from an expiration profile standpoint. If we don't get a pickup in the market early in the season, then we're going to be locking in those leases for a year at fairly flat revenues. Yeah. That's what she said. Anne, what are you expecting as far as occupancy? At 94.8% last year, do you expect occupancy to tick up, or are you just trying to maintain? Yeah, I think we're really focused on maintaining the occupancy really in a tight range this year. We think that we might see it go down 70 basis points or so. During that time that it goes down, we would expect that that's our opportunity to be pushing rents up. We'd really like to manage. Given our conservative view of where revenue might be, we're looking to manage our occupancy in a pretty tight bandwidth this year. Okay. My final question is on the insurance premiums increasing 15%. I think that's pretty consistent with what your peers have been saying. You're not in a lot of locations which have a lot of natural disaster risks, or so it seems. Can you just elaborate on the big increase you're expecting, and also if you expect it to moderate in 2022? Yeah. John, I think there's a couple of things going on. Number one is that the insurance market, just generally speaking, is not excited about habitational insurance right now, because people live there 24 hours, and they smoke cigarettes and have parties and leak water and do all sorts of things that they don't do in office buildings. We have seen a step away from that. We've also seen a generally tough several years of real Catastrophe losses across the world, and it's like a balloon. There's only so much money in the world for insurance. Our particular issue, you're right, we don't really have a lot of hurricanes or things like that. We have hail. Hail is probably our biggest natural thing. Hail went from being an all other peril, meaning it was included in our sort of general policy to having its own rider, which was a pretty big hit. We do expect it to moderate in 2022, based on what we're hearing from that market. Great. Thank you. Thanks, John. Our next question will come from Amanda Sweitzer with Baird. Please go ahead. Thanks. Good morning, all. Following up on your fundamentals, you had a nice uptick in sequential occupancy in Denver this quarter. Have you seen pricing power improve at all in the urban areas of that market? Yeah. Go ahead, Anne. Yeah. We haven't. I think we're kind of holding at the bottom. There are some bright points. Our renewals are starting to get some pricing power there, but the new leasing is still pretty affected, particularly in the urban area. We do have some non-same store assets in the suburbs that are looking stronger, but those urban assets are still feeling pressure of supply and social unrest. Yeah. That's RiNo and West End, Amanda. Dylan at RiNo, excuse me, and West End. That's helpful. Then kind of higher level on capital allocation. As you think about portfolio construction, where are you comfortable expanding your exposure to Minneapolis and in Denver if you don't find those attractive opportunities in Nashville? Is there a point where you expand your target market list? The answer is we're reasonably comfortable with a lot of exposure to these markets. A lot as defined by, I don't know, I could imagine we could go higher from here in each of these markets. If we find good opportunities, we will. That might push us to expand the list sooner or push us into Nashville, I'd say, with greater energy. I think, on the one hand, as we've talked about, having three markets was a big lift for us in terms of opportunity set because we went from two to three. At this time, we're holding there. I think we're always watchful for opportunities that are in other markets that are somewhat transformational, but those are hard to connect on, and they'd have to be in markets we really like. We've done a lot of market work. We have a top 10 market list. For now, we're really focused in Nashville. If we continue to miss, then we'll reevaluate. It's only been less than a year. Fair enough. Thanks for the time. Thanks, Amanda. Our next question will come from Rob Stevenson with Janney. Please go ahead. Good morning, guys. John, did you say how much you're expecting property taxes to be up? Excuse me. I don't think I gave that on there. They are going to be up nearly 4%. Okay. Definitely less than what they went up for 2020. Still a big increase. Okay. Is that certain markets or is that across the board for you guys? Yeah, it's really across the board. It definitely hits, for example, we got a couple of properties going from non-same store to same store in Denver that just from timing-wise, are just now getting hit with the adjustment for the purchase price we paid for them. We do have some of those kind of Denver will be hit hard this year, but really it's getting to where we underwrote it, so it'll just look. Generally speaking, outside of that, no. It's pretty much across all markets. Yeah. You'll recall last year, we had a really big hit in Rochester. This year is much more kind of even. Okay. John, you were just addressing my next question to me. How substantial is the additions to the same-store portfolio as you roll forward here, and is that primarily concentrated in Denver? Yes. We have two assets coming out from Denver, and one in Minneapolis. A total of three assets, and they are larger assets, so they'll make a bigger impact. Really you'll see it in Denver. Is that one of the drivers of the low end of the same-store revenue range, is the addition of those assets into the same-store portfolio? The driver of the low-end revenue range? Your -50 basis points for same-store revenue growth in 2021. If those three assets were still excluded from the same-store portfolio, would the low end of the same-store revenue growth range be flat or +50 basis points instead of -50 basis points without those? I would assume that those under more pressure than your upper Midwest assets. Said another way, are those new assets bringing down our revenue growth? Is that what you're asking? Yes. Yeah, I don't think so. I don't have that in front of me, but I don't think so. In Denver, it's a suburban market. We also have two assets coming in from Minneapolis. One is a smaller urban asset, which, to your point, might bring it down, but one is a suburban asset that should lift it up. I think all it's going to be a net. The other thing, we have 2020 in the baseline of those assets, to the extent they were urban asset being added to same store in 2021, their comp for 2020 is not going to be a hard comp to compete against from a revenue growth perspective. Yeah. Actually, just to clarify, it's two assets from Minneapolis, not Denver. Yeah. The three assets that are coming in are FreightYard, which is a small asset that is in the urban core of Minneapolis, Southfork, which is a good suburban B that we've been undergoing some value add on, and Lugano, which is suburban Denver. Okay. Other than the same-store revenue growth, John, when you put together the guidance, what's the major places where you had the least amount of confidence in whether or not stuff was going to come in at the low end or the high end of your expectations here? Yeah. I think revenue's always, especially coming out of a year like 2020. I think revenue is an area that we were getting a lot of data, as Anne mentioned, saying there would be a recovery in 2021, but it would be in the later part of the year. If that happens sooner, I think that will be very positive for our portfolio for us to get after it. I think on the expense side, there's some uncertainty there because we had a lot of lockdowns, and our ops team really responded well there. As there weren't things for them to do at the property, they were stepping in to do the work that contractors would normally do. Trying to thread the needle on how do we bounce back in 2021, assuming properties are open the entire year, which of those savings will we be able to capture and make permanent and which will be returning to the norm. Yeah. Rob, as you know, it was a humbling year in the prediction business. As we've talked about, we're conservative on revenues, and we're forecasting or guiding expense. We feel comfortable with our expense guidance, and we're nervously watching on the revenue side. Now, again, our portfolio performed very well in 2020. To John's point, everything's open again, and so we're going to have it staffed and we're going to pay for those things. Things that didn't get done last year, your dryer vents or whatever, are going to get done this year. We're not going to do them twice, but we're going to do them, and we didn't do them last year. On the human capital side, we have forecast some reasonable inflation and lots of utilization of healthcare, where again, a lot of people didn't go to the doctor for six months, and they might this year. Again, they're not going to go twice, but they're going to go. We sort of have all those things underwritten to happen, and we'll see. Okay. The last one for me. Anne, on the sequential same-store sheet, the average monthly rental rate for the fourth quarter was down 10 basis points from the third quarter levels, but revenue per occupied home was up 90 basis points. I assume the GAAP, like many of your peers, is mostly fees. Is there anything else in there driving the diversion? Can you also talk about what you're seeing fee-wise here to cause a sequential jump in that number of that magnitude? Yeah. I think in the fourth quarter, we had a unique one-time revenue jump of $450,000 related to pulling forward and shortening the billing cycle on our RUBS as we converted to a new provider. That's really the driver of that revenue in the fourth quarter. Okay. It was one time. I do think we are constantly assessing all the fees. This RUBS initiative as part of our Rise by Five we think will allow us to collect more of the RUBS and increase revenue over time, but that $450,000 is a one-time driver in the fourth quarter. What percent of the portfolio is on RUBS rather than individual billing for utilities? Well, almost all of it. Even the newer stuff? Yep. Yeah. Okay. Thanks, guys. Thanks, Rob. Once again, if you'd like to ask a question, please press star then one. Our next question will come from Buck Horne with Raymond James. Please go ahead. Hey, thank you. Good morning. I'm just going to ask one of Amanda's questions, though just for a slightly different market. Just if you've seen any difference in pricing or performance recently in Minneapolis-Saint Paul in terms of urban core performance relative to the suburban, or just any characterization on how the different property locations are performing in the Minneapolis area? Yeah. Good morning, Buck. Thanks for that. There's no question that urban core is a much tougher sledding from a pricing power and operational perspective. We really have three assets that are affected kind of head-on. One is called Oxbow, which is right in the urban core in Saint Paul, right from the Xcel Energy Center, which normally is a very vibrant place. We're getting close to the state hockey finals. Normally, that place would be booked solid for two and a half weeks, all the bars and restaurants would be going, Ecolab is right there. There's 8,500 hospital jobs right there. There's just a whole bunch of things that make that sub-market really awesome, most of them are not operational right now. If you're the executive from Ecolab who lives in our apartment and weekends at your cabin, which we have several of those, they don't need an apartment this year. They didn't need it when the renewal came up. The two bars that are in our space there, one is closed, one is doing their best, but really struggling because when it's not hockey weekend, it's The Wild or it's music or whatever. Similar dynamic in Minneapolis. We have two assets, Red 20 and Freight Yard, which are both also in the urban core and just benefit from what is great about cities, which is food, music, people, sports, et cetera, adjacencies to the office. All those things are just kind of on hold right now. We're seeing, I think last quarter we talked about this, I don't have the specific, Anne may be able to add, we were seeing lease on lease down 15% there. We are holding occupancy, I would say if you looked at where we are in those three assets versus the sub-markets, we're more occupied, kind of three to five or six points more occupied than market. Look, until it's fun to be back in the city again, I think those assets are going to continue to suffer. In the suburbs, it is really a totally different story. Our product there that's more, that I would call A product is somewhat supply tested. Again, we're staying full. We're seeing flat to modest positive or modest negative rents. In a suburban B, we're really seeing some pricing power, and we've continued to execute on value add. I guess hopefully that answers the question. If not, please keep at it. Yeah No, thank you. That's great transparency. Thank you for all that color. Thank you very much. Switch over to just the thoughts on the ATM issuance, the equity issuance throughout the year. Just how are you thinking about potential timing of that? Do you anticipate a more ratable kind of issuance over the course of the year? Is it going to be structured to coincide with transactions as they come up? How should we process or think about the ATM part of the capital raise this year? Listen, we're price sensitive, so I guess we'd lead with that, but we're going to be fundamentally kind of thinking about it on a ratable basis. We enjoy right now access to that private placement market, and that's something we really want to keep. We have to watch our leverage ratios there. With the Union Pointe, you might see us either raise ATM equity or dispose of assets to kind of put ourselves back in line there from a leverage perspective. Listen, we have lots of opportunities. We usually have a lot more opportunities than capital. That's the other governor. It's price, it's opportunity, and it's kind of managing our overall balance sheet exposure. If you're asking a modeling question, John, jump in if you think I've got this wrong, I would just model it ratably over four quarters. They don't let me answer modeling questions. John, do you want to confirm that? That's awesome. I will confirm that. Great. Thanks, guys. That's great. Thank you, Buck. Our next question will come from Daniel Santos with Piper Sandler. Please go ahead. Hey, good morning. Thanks for taking my questions. My first question was on, I was wondering if you could maybe talk a little bit about cash flow and dividend payout. Just given the lower than expected guidance, it seems like the payout might be a little tighter than we would've anticipated. Yeah. I suppose we don't report an AFFO number, and as we've noted, the Street looks at it differently. Based on how we count AFFO, which I think is reasonably conservative, we cover the dividend in 2020, and we'd expect to cover it in 2021. In both cases, healthily, when you look at it on a 12-month basis. I don't think we're at risk of raising the dividend. As one trustee, I wouldn't be in favor of cutting it. Got it. That's helpful. I was wondering if you could give us some color on maybe some of those smaller markets that have performed really well, like the North Dakotas, the South Dakotas. What's your sort of outlook on those markets, given their strength in 2020? Yeah. I guess I'll start by saying, a lot of what we've done on the pruning assets there, or what we call pruning assets, has helped where we've left ourselves with a portfolio that is, generally speaking, younger, generally speaking, higher rent and more efficient from kind of a human capital basis. It's kind of started there. Anne, maybe you could talk specifically about the operations. Yeah. I think in the smaller markets, we have the advantage of not having the supply that we see in some of our larger markets. Some of those smaller markets, particularly Rapid City and Billings, have benefited from in-migration, so accelerated population growth that wasn't expected in 2020. That may continue into 2021. We have been somewhat conservative in forecasting out what we think will happen across North Dakota and in Billings and Rapid City, given the historical slower growth of those markets. I think we did see a good increase this last year, that we saw more people moving around. We're able to push lease rents in those markets, and those have been kind of bright spots in the portfolio, even in the fourth quarter and in January. I don't know that we think they're going to outperform the suburban market, particularly the suburban markets of Minneapolis and Denver, we think are going to perform just as strong or stronger than those smaller markets. Yeah, it's interesting. There's a very strong broker we work with who's based out of Bismarck, and she would say, "Hey, listen, we're open." Which, setting judgment aside, it's just easier to live and do business in a place where you can do things. I think that has been a powerful catalyst as well. Got it. That all makes sense. I appreciate the detail, and congrats on a strong quarter. Thank you. Thank you. Our next question will come from John Kim with BMO Capital Markets. Please go ahead. Hey, thanks. Just some follow-up questions on your guidance. You guys mentioned that you expect bad debt to improve during the year. Is that contemplated in your same-store revenue guidance for the year? Yeah, I think for the year or year-over-year, it's almost flat, because if you remember, we had our normal round of bad debt in Q1. I think Anne's comments are talking about where we're going to be by the end of the year. Yes, that improvement is contemplated, but on a year-over-year basis, it really works out to be it's flat. Okay. Your disposition guidance of $65 million at the midpoint, how realistic is this figure, just given potential repositioning efforts? I'd say it's pretty realistic. I think this is our first year giving acquisition and disposition guidance. It is. Yeah, we're serious about it. As was just pointed out kind of at the beginning of the last question, we do like the portfolios that we have in the Dakotas now a lot better than what we had before because they're more efficient. They're, generally speaking, higher rent, and sometimes younger, and so have less capital. Applying that lens is something that we think really does make a difference. We were very pleased to get off the sales that we got last fall, the $44 million in Grand Forks. When we're out on the road and we talk to the teams and when you talk to the teams before that happens, they're all nervous and upset because you're going to sell the thing that they work at, and they don't like that. You do it, and we have the ability often to keep a lot of our, or all of our best people, and they're like, "this is great." It's the 80/20 rule. We were spending all this time on these little things that have more problems. We believe in that. Certainly we have a track record for trying to make the portfolio more efficient, and we're going to continue to do that. Really long-winded way to say we mean it. Your other markets are 10% of your same-store NOI. If you sell $65 million, where does that other market exposure go to? Well, we're not going to comment on which market we're selling from. We have opportunities to improve the portfolio probably in every market, John. I'm not trying to be flip with you. That doesn't necessarily mean it's coming out of that other market. Okay. Then you had rebranding costs of $400,000. Is that all you're going to have, or is there more in 2021? Are all those costs going to be added back to core FFO? Yeah, that's it for the expenses. Now it's just uniforms will be uniforms, so everything else is just kind of in the budget. Yeah, there won't be future add backs. That was the total. Were some of those costs in G&A or in the NOI in the fourth quarter? They were all in G&A. Okay. Great. Thank you. Thanks, John. This will conclude our question and answer session. I'd like to turn the conference back over to the management for any closing remarks. Thanks very much. Everybody, we appreciate your time and interest in Centerspace, and we'll talk to you in a couple of months. Thanks very much. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.