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EVP & CFO Brandon Togashi clarified that move-in rates exclude discounts and are not a direct predictor of in-place rates due to the ECRI program's impact. President & CEO David Cramer confirmed the positive monthly RevPAS trend into July, attributing it to strategic rent management, though Togashi noted concessions would still weigh on the final revenue growth figure.

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CEO Dave Cramer explained that sequential rate growth has been strong all year, with move-in rates turning positive in March and improving further. Regarding the PRO transition, he stated they are making good progress on closing the 250-300 basis point occupancy gap and expect to see more traction by mid-summer as marketing and pricing tools are fully leveraged.

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CEO Dave Cramer explained that rate improvements have been sequential all year, with move-in rates turning positive in March and continuing to improve. He noted that while occupancy is softer, rate growth is exceeding expectations. Regarding the PRO transition, Cramer stated they are making good progress on closing the 250-300 basis point occupancy gap and expect to see more traction by the mid-summer months as marketing and pricing tools are fully implemented.

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CEO Dave Cramer attributed the improvement primarily to increased confidence in raising street rates post-PRO transition, as the company felt occupancy had stabilized. He noted that a more stable competitive environment and a slight pickup in housing activity were also factors. For 2025, Cramer expects strength to come from more stable asking rents and enhanced execution of their ECRI program, rather than from significant occupancy gains.

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President & CFO Alex Jessett explained that while blended rates are now forecast to be just under 1% for the second half, the full-year 1% revenue growth target will be met through better-than-expected occupancy, lower bad debt, and higher other income. He credited the new Vero screening process for reducing bad debt to pre-COVID levels. EVP & COO Lori Baker added that a record-high customer sentiment score is driving strong resident retention.

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Chairman and CEO Ric Campo confirmed that the prevailing economic uncertainty is the primary reason for their cautious stance. He stated that while the business is performing well with no "cracks in the ice," the market volatility necessitates a "wait-and-see" approach, and they might have been more constructive on guidance in a more certain environment.

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President and CFO Alexander Jessett explained that acquisitions are planned before dispositions for tax efficiency using reverse 1031 exchanges. He clarified that the FFO dilution in 2025 will be wider, near 100 bps, because the company is selling older, more capital-intensive assets. However, he advised against extrapolating this dilution, as transactions in 2026-2027 will involve more comparable assets, resulting in tighter FFO yield spreads.

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Chairman and CEO Richard Campo explained that the decision was about disciplined capital allocation, not just rent levels. He noted that construction costs have not decreased while rents have, making new developments challenging. The paused projects were in markets where Camden is reducing exposure (California, urban Houston) or has concentration issues (Atlanta's Buckhead). Campo stated that to make these projects work now, rent growth would need to be about 100 basis points above the long-term average, but the company prefers to allocate capital to acquisitions below replacement cost in the current environment.

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CEO Christopher Marr stated that construction starts are decreasing due to high costs for materials, land, and labor, along with tight financing. He expects fewer new projects in 2026-2027. He added that it's a micro-market question, but rents still have 'a bit of a ways to go' before new development pencils out for most.

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President and CEO Christopher Marr explained that advertising spend is lumpy quarter-to-quarter based on system-driven opportunities and that the Q4 level had no negative impact on performance. CFO Tim Martin clarified that other property income will see outsized growth in Q1 2025 before stabilizing, as the company will lap fee structure changes made in May 2024. He stressed these revenue changes are permanent and sticky.

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CEO & Trustee Bryan Smith and SEVP & CFO Christopher Lau confirmed that less occupancy deceleration is expected in H2 2025 due to the lease expiration management program reducing move-outs. Lau noted that occupancy dropped about 100 basis points from June to year-end 2024, and a much flatter trend is expected this year. He stated that July 2025 same-home occupancy was 96.1%.

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CEO Bryan Smith confirmed that strong leasing demand from late 2024 has continued into Q1, with January new lease rates accelerating and February expected to see an occupancy pickup. He stated that new lease rate growth is on a positive trajectory and the company is well-positioned for the spring leasing season. For the full year 2025, Smith broke down the blended rent growth expectation into new leases in the 3% area and renewals in the 4% area, supported by a low single-digit loss-to-lease and market rent growth around 3%.

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COO Bryan Smith expressed confidence that leasing activity picked up in October, expecting to gain some occupancy by year-end and build momentum for 2025. CFO Chris Lau provided preliminary building blocks for 2025 revenue, estimating a low 2% earn-in from 2024 activity, noting third-party market rent growth forecasts of 3-4%, and a low single-digit loss-to-lease.

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EVP & CFO Fernando Castro-Caratini stated the UK ground lease repurchases were done at a blended 4.25% yield, which is accretive, and provide flexibility by converting leaseholds to freeholds, eliminating future rent escalations. He clarified the transient RV revenue improvement from Q1 to Q2 was expected due to seasonality, as most transient-focused assets open in the summer, and reiterated the full-year guidance for a transient revenue decline of about 9%.

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Executive Fernando Castro-Caratini confirmed the guidance assumes a cash balance of around $1.7 billion with no prospective acquisitions baked in. Executive Gary Shiffman stated they are actively engaged on high-quality MH single-asset and small portfolio opportunities but will remain disciplined, noting the 45-day window is for identification only. Castro-Caratini specified recurring CapEx is expected to be just over $70 million for 2025 and that the prior write-down related to remaining goodwill in the U.K.

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CEO Joseph Margolis affirmed that the board has a price band for buybacks and they are prepared to act when appropriate. On AI, he acknowledged its rapid evolution makes demand harder to measure, while EVP & CFO Jeff Norman added that it leads to more qualified, higher-converting web traffic.

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CEO Joseph Margolis acknowledged that moving-related demand has declined from a peak of 63% of customers to 54% in Q1. However, he highlighted that the 'lack of space' customer has grown to 35% of tenants and has a length of stay twice as long as a moving customer. He confirmed this trend is more pronounced in dense urban markets like New York, which has contributed to that market's outperformance.

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CEO Joseph Margolis clarified the L.A. rent cap applies to the existing rates customers are paying. Executive P. Stubbs explained the full-year revenue guidance appears modest because the year starts from a lower base (Q4 revenue was down 0.4%), and the positive effects of improving rates are expected to have a greater impact in the second half of the year.

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CEO Joseph Margolis affirmed his expectation that the LSI portfolio will outperform the EXR portfolio next year. He explained that pricing is not a macro decision but is driven by algorithms that optimize for long-term revenue, not just occupancy. The company constantly runs A/B tests on algorithm-produced prices to ensure it is maximizing customer value.

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SVP & CFO Thomas Boyle explained that the impact from rental rate caps on existing customers is well-defined and the primary driver of the decline. The main variable is the underlying strength of customer demand, which has been encouraging. He estimated that upon the restrictions' expiration, revenue could be recaptured over approximately one year.

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H. Boyle clarified the L.A. impact will be a gradual ramp-up totaling 100 basis points for the year, not a sudden spike. He explained that Q1 expenses benefited from some non-recurring items, like easier comps on health plan costs, and that advertising spend, while down in Q1, will be managed dynamically throughout the year.

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Executive H. Boyle clarified that improving overall demand trends, not just occupancy, drive pricing. He cited Seattle as an example where occupancy was up only modestly but move-in rent growth was positive. Boyle explained their revenue management system optimizes for total revenue by balancing inventory, local demand, and price sensitivity, noting that new customers remain price-sensitive but become less so after moving in.

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President Charles Young explained that the trend aligns with expectations, as seasonal turnover typically increases in Q3. He noted that supply in markets like Central Florida and Texas is slightly increasing the 'days to re-resident' metric, contributing to the anticipated dip into the mid-96% range, which he described as a 'reset year' for occupancy.

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President Charles Young explained that the year is unfolding as expected, with seasonal turnover increasing in Q3, which is reflected in the July occupancy figures. He noted that this is a typical seasonal pattern and that some supply in markets like Central Florida and Texas is slightly increasing the time to re-resident a home, aligning with their initial forecast for an occupancy reset to the mid-96% range.

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Chief Investment Officer Scott Eisen confirmed that dialogue with homebuilders remains strong and they continue to selectively pursue forward purchase opportunities. He mentioned a recent increase in discussions around 'end of month tapes,' which is creating opportunistic chances to acquire small batches of homes, but the overall partnership dialogue continues to be robust.

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Chief Financial Officer Jonathan Olsen confirmed the mid-3% blended rent growth forecast for 2025 is a measured approach. He explained that while new lease rates accelerate early in the year, they typically moderate during summer's higher turnover season. Olsen noted that ongoing market supply pressures are expected to be absorbed, which will likely impact occupancy by slightly increasing days on market as the company prioritizes achieving optimal rental rates.

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Chief Financial Officer Jon Olsen stated that the company would provide detailed 2025 guidance in about 90 days. However, he did indicate that the current earn-in is around 2% and mentioned they would be in a better position to discuss loss-to-lease later in the year when it becomes a more relevant starting point for the next year.

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COO Robert Nitkin detailed that while the underwriting for build-to-rent is similar, it has a nuanced focus on operating income. He stated that over the long term, most of the Taylor Morrison opportunity is expected to be allocated to Millrose. CEO Darren Richman added that the deal is derisked as it includes financing for vertical construction. Regarding capital, Richman confirmed the priority is optimizing the balance sheet with debt and there are no plans for dilutive equity issuance. He declined to give contract-level details on credit enhancements but emphasized strong protections are in place and no single MSA represents more than 6% of the portfolio.

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COO Robert Nitkin detailed that the EPS guidance assumes the $1.5 billion non-Lennar funding target with yields and debt costs that are more conservative than current levels. He confirmed that risk mitigation includes higher deposits and varied cross-collateralization, with underwriting remaining rigorous. CEO and President Darren Richman clarified the new term loan is a corporate facility with terms consistent with the existing revolver. He explained the 100% dividend payout maximizes shareholder returns, as retaining the small amount of extra cash offers little reinvestment benefit but significantly impacts effective yield. Robert Nitkin added that the impact from Lennar's deposit-funded fees on the run rate is not meaningful.

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President & CFO Jim Sebra attributed the negative new lease trade-outs to the high rent levels of leases signed 2 to 2.5 years ago that are now expiring. Regarding occupancy, he stated that July trends showed a rise toward the 95.6% level, supporting their confidence in maintaining and slightly increasing it for the remainder of the year.

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President and CFO Jim Sebra explained that ATM issuance is accretive, as acquisition cap rates in the high 5% range exceed their ~5.4% cost of capital. He also clarified that the strategic shift away from short-term leases began in mid-2024 to optimize the lease expiration schedule and is expected to be completed by mid-2025.

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Executive Scott Schaeffer explained that value-add was curtailed in 2024 due to supply pressures, which are now waning. CFO James Sebra added that dispersing renovations across 15 new communities will mitigate occupancy impact. Regarding bad debt, Executive Janice Richards cited seasonality for the Q4 rise, while James Sebra expressed confidence in the 2025 forecast due to the success of fraud identification measures implemented over the past 1.5 years.

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CFO James Sebra attributed the sequential revenue improvement to lower bad debt expense and growth in other income. Looking ahead, Sebra mentioned ongoing efforts to reduce bad debt and add amenity offerings, and pointed to external forecasts for market rent growth in the 3% to 3.5% range as a key building block for next year's revenue.

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President & CEO Angela Kleiman clarified that the expected deceleration in blended rent growth is a function of normal seasonality following a peak in July. EVP & CFO Barb Pak added that the more anemic-than-expected performance in Los Angeles, which has a different seasonal pattern, also contributed to the revised second-half forecast.

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Executive Angela Kleiman explained that the occupancy strategy is nuanced by region for the peak leasing season. The company is pushing rents in Northern California, managing a transition in Seattle due to supply, and focusing on occupancy in Southern California, which peaks later. She stated there are no signs of weakening demand or cracks in fundamentals, and recent tariff announcements have not had an observable impact on their markets.

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Executive Angela Kleiman stated that Essex's strategy is to keep renewal rates market-appropriate, which can cause year-over-year lumpiness, and the focus is on total revenue maximization. She attributed the expected second-half acceleration to supply cadence, with 60% of new supply delivering in the first half, and the lag time between rising tech job postings and actual hiring, which is expected to boost demand later in the year.

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EVP & COO Michael Manelis responded that the portfolio currently has a 2.6% loss-to-lease, slightly below normal, and he expects it to end the year with a moderate gain-to-lease, which is not unusual. EVP & CIO Alexander Brackenridge clarified that the Sunbelt recovery is submarket-specific; while some EQR-owned properties are poised for recovery, broader markets like Austin and Phoenix face a significant supply overhang that will take longer to absorb, with challenges potentially extending into 2027.

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Chief Investment Officer Alec Brackenridge noted a recent pickup in Sunbelt transaction activity, with pricing around a 5% cap rate, as buyers anticipate that decreasing supply will offset job growth uncertainty. Chief Operating Officer Michael Manelis explained that the Q2 blended spread guidance of 2.8% to 3.4% is based on normal seasonal trends and consistent renewal performance, with less than a third of new leases for the quarter signed so far.

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CFO Bob Garechana explained that the revenue growth acceleration is back-half weighted due to two main factors: lower starting embedded growth, which means more of the year's growth will come from the prime spring/summer leasing season, and the rollout of other income initiatives like connectivity, which also ramps up later in the year. COO Michael Manelis added that while the seasonal shape is normal, the overall blended rate growth will be elevated compared to 2024, with the third quarter likely being the strongest.

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CFO Bob Garechana explained that the opportunity in bad debt lies in closing the gap from the current ~1% of revenue to the pre-pandemic norm of 50 basis points. He confirmed the WiFi program's contribution will be more meaningful in Q4 and 2025. CIO Alex Brackenridge added that despite rate volatility, a 5% cap rate for Sunbelt acquisitions still feels appropriate, though the market is in a 'feeling out process'.

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CEO Mahbod Nia confirmed a 'discount for size' exists in the current market, making assets over a couple hundred million dollars more challenging to sell. He identified properties like House 25 and Liberty Towers as examples of larger assets. He stated the recent sales were executed at a slight discount to replacement cost but represented strong pricing for the current market, evidenced by a low 5% average cap rate.

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Chief Executive Officer Mahbod Nia explained that acquiring the partner's illiquid minority stake was the most accretive path, given the limited buyer pool for large assets and the significant, immediately realizable synergies. Nia clarified the 6.1% cap rate is based on Q1 annualized NOI plus over $1.4 million in synergies from management internalization and payroll savings. Chief Financial Officer Amanda Lombard added that the asset's Q4 2024 NOI was artificially low due to a straight-line rent adjustment, making the year-over-year growth appear exaggerated.

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CFO Amanda Lombard confirmed the NOI figure included one-time benefits, specifying that approximately $1.3 million of the NOI improvement was from prior-period adjustments for insurance and taxes. She and CEO Mahbod Nia clarified that the insurance savings were driven by improved market pricing, not changes in coverage, though Nia noted their geographic concentration still results in a margin penalty compared to peers.

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EVP & CFO Paul Seavey detailed that savings were realized across both variable expenses (tied to transient occupancy) and fixed costs, including benefits from the recent insurance renewal and membership marketing. President & COO Patrick Waite explained that annual RV turnover, historically 5%, was elevated at about 20 properties in the Northeast as the portfolio cycles through a period of peak demand from prior years.

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Patrick Waite, an executive, detailed that the full impact of hurricane damage becomes clear over several months as residents make final decisions. Marguerite Nader, an executive, added that the key trigger for the change was when impacted residents stopped paying rent. Paul Seavey, an executive, noted Canadian customers are about 10% of RV revenue and that no guidance change was made based on their behavior, as the primary impact is in Q1.

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Paul Seavey, an executive, explained that the expense guidance is expected to align with CPI, with savings anticipated in administrative expenses and membership commissions. He confirmed the ~$4 million increase in other income is primarily driven by expectations for sales and ancillary activity, and that a JV distribution similar to the one in 2024 is anticipated in Q1 2025.

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Paul Seavey, EVP and CFO, acknowledged a ~$5 million cost to unwind the associated swaps but emphasized the transaction was attractive to remove 6.05% debt and create future flexibility. Marguerite Nader, President and CEO, added that the move improves their position to act on acquisition opportunities, though she noted the current transaction market for institutional-quality assets remains slow with limited inventory.

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Chief Operating Officer Sean Breslin explained that rent change is tracking to plan, with the year-over-year difference attributed to an earlier acceleration in occupancy and rate growth in the prior year. CEO Benjamin Schall added that the expansion strategy is primarily funded by asset trades, making it less sensitive to capital markets, and a slowdown would likely only occur if transaction markets became illiquid.

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CFO Kevin O'Shea detailed the factors affecting development accretion, noting that higher capitalized interest is offset by lower occupancies, lower cash levels, and a higher share count, resulting in about $0.15 of growth from investment platforms. CIO Matthew Birenbaum and COO Sean Breslin added that while they would consider acquiring strategically aligned BTR portfolios, much of the existing product is in tertiary markets. They see growth coming more from their Development Funding Program (DFP) and their own construction, which aligns well with their increasingly mobile operating model.

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COO Sean Breslin projected that new supply in coastal regions would likely trend down over the next few years due to a challenging development climate. CIO Matthew Birenbaum explained that the new Sunbelt starts underwrite to a ~6% yield and that the Austin project's timing is advantageous, capitalizing on lower hard costs and a projected lease-up in 2026 with less competition. CEO Benjamin Schall added that AvalonBay's cost of capital advantage and operating model initiatives can add 30-40 basis points of incremental yield to new developments.

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Tim Argo, Executive Vice President and Chief Operating Officer, stated that MAA has good visibility into leasing, with a handle on about half of May's new leases and a quarter of June's. He expressed confidence based on the steady acceleration in new lease rates, which improved from nearly -9% in December to -4.6% in April, a trend he expects to continue into the summer leasing season.

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Tim Argo, EVP and Chief Strategy Officer, explained that the expected improvement is driven more by normal seasonality and the concentration of lease expirations in Q2 and Q3, rather than a specific back-half prediction. Brad Hill, President and CEO, added that diminishing supply pressure will also support this trend. Regarding renewals, Tim Argo noted the average resident stay is around 21-22 months, making consecutive multi-year renewals uncommon, which naturally limits how wide the gap between renewal and market rates can become.

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Tim Argo, EVP and COO, identified new lease pricing as the key metric for 2025 guidance, noting that Q4 performance has a limited impact on earn-in. He highlighted the property-wide WiFi program as a future revenue driver, with plans to expand from 4 test properties to 20-25 properties in 2025, which could have a significant financial impact. H. Bolton, CEO, added that the low percentage of leases expiring in Q4 minimizes the near-term impact on earn-in.

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COO Mike Lacy stated that high occupancy (above 97%) is allowing UDR to reduce concessions, which were around one week in January and trending lower. Chairman and CEO Tom Toomey explained that the executive changes, including Joe Fisher's move to CIO, are part of a strategic effort to deepen the talent bench, bring fresh perspectives to key areas like investments, and drive long-term shareholder value.

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SVP of Operations Mike Lacy projected that while the first half of 2025 will see similar trends, a return to 2-3% rent growth could occur in the back half of the year. CEO Tom Toomey added that job growth remains the key variable. CFO Joe Fisher clarified that the bad debt improvement was a 2024 event, with the year expected to finish with bad debt just over 1%. He anticipates further benefits from enhanced screening but does not expect a return to pre-pandemic historical averages.

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