Kyle Katorincek

Kyle Katorincek from Janney Montgomery Scott asked about the reduction in unsettled forward equity, from $250 million last quarter to around $150 million. He questioned whether this decrease reflected a smaller deal pipeline or was more a function of the company's current stock price.

Answer

William Lenehan, President, CEO & Director, indicated that the change in the unsettled forward equity balance was primarily a function of the company's stock price.

Kyle Katorincek of Janney Montgomery Scott inquired about the proportion of non-revenue-producing recurring capitalized maintenance, the drivers behind the accelerated pace of the unit rehab program, and the useful life assumption used for calculating ROI on renovated units.

Answer

CFO Paul Richards explained that maintenance spending was elevated due to required CapEx from refinancing and specific large projects, skewing it toward non-revenue-generating items, which should normalize by Q4. He also credited the faster-than-expected rehab ramp-up to the team's focus on smaller, high-impact upgrade opportunities. EVP & CIO Matt McGraner added that the useful life for ROI calculations is historically seven years, with no difference between full and partial rehabs.

Kyle Katorincek of Janney Montgomery Scott inquired about the proportion of year-to-date recurring capitalized maintenance that is non-revenue producing, the drivers behind the accelerated pace of the unit rehab program, and the useful life assumption used for calculating ROI on post-rehab units.

Answer

Paul Richards, CFO, explained that non-revenue producing CapEx was elevated due to agency refinancing requirements and specific large projects, such as roof replacements. He attributed the faster-than-expected rehab ramp-up to the team's focus on smaller, high-impact opportunities. Matt McGraner, CIO, clarified that the useful life for ROI calculations has historically been seven years.

Kyle Katorincek of Janney Montgomery Scott inquired about the portion of year-to-date recurring capitalized maintenance that is non-revenue producing, the drivers behind the accelerated pace of the unit rehab program in Q2, and the useful life assumption used for calculating ROI on rehabs.

Answer

CFO Paul Richards explained that maintenance spend was elevated and skewed toward non-revenue generating projects like roofing due to refinancing requirements, but should normalize by Q4. He also credited the faster-than-expected rehab ramp-up to the asset management team's focus on smaller, high-impact upgrades. EVP & CIO Matt McGraner added that the useful life for calculating rehab ROI is historically seven years for both full and partial upgrades.