Question · Q3 2025
Nick Coulter, on behalf of Eric Wolfe, questioned the drivers behind the implied deceleration in same-store revenue growth, specifically asking about the impact of fee income and bad debt.
Answer
Chris Lau, Chief Financial Officer, attributed the deceleration to the timing of last year's leasing spreads earning into this year, with blended spreads moderating in Q4 2024. He also noted that fees, tied to strategically accelerated leasing volumes due to the Lease Expiration Management Initiative, would likely comp negatively year-over-year in Q4. He emphasized the prudence in guidance given a choppy residential environment, highlighting the full-year top-line outlook in the high threes and expected NOI margin expansion.