Question · Q3 2025
Greg McGuinness asked how the 4.4% yield on assets stabilized in Q3 compared to initial underwriting, how assumptions are being adjusted for the current pipeline, and the company's targeted yields going forward.
Answer
Laura Clark, Chief Operating Officer, reported that 14 properties stabilized year-to-date at an average yield of 5.8%, with seven properties in Q3 stabilizing at 4.4%. She acknowledged that some yields fell short of expectations due to market conditions and rent declines but emphasized the superior positioning of these properties. She affirmed the commitment to allocating capital to the highest risk-adjusted returns, adjusting yields based on achievable rents, and potentially pausing or disposing of projects that do not meet their criteria.