Favorable migration patterns and return-to-office in Seattle and San Francisco

Q2: More people moving from suburbs; Salesforce/Amazon RTO noted. " Q1: Smaller improvements; cautious outlook. " " Q4: Less than normal inbound migration, some improvement near year-end. "

Seattle occupancy 96%+, boosted by Amazon’s 5-day RTO; San Francisco occupancy 96.2%, supported by Salesforce’s RTO and limited new supply. " " " "

Consistently mentioned with increasingly positive sentiment.

Strategic acquisitions in high-growth markets

Q2/Q1: Similar focus on building scale in these markets despite oversupply. " " " " " " Q4: Reiterated long-term commitment despite high supply. " "

Closed on 14 assets ($1.26B), targeting 20–25% of portfolio in Atlanta, Dallas, Denver over next 18–24 months; aims 5% cap rates. " " "

Ongoing investment priority, expanding Sunbelt presence.

Efforts to capture rental rate increases through renewals

Q2: 5% renewal increase, targeting 4.5% into Q3. " Q1: 61% resident renewals, high occupancy. " Q4: 4% renewal growth guided. "

Renewal quotes at 6.5–7%, expecting 4.7% actual; emphasizes retention. "

Maintained focus on leveraging renewals for revenue.

Concerns about rising expenses from inflation and expiring tax abatements

Q2: Property taxes 45% of costs, 421-a expiration flagged. " " Q1: No mention. Q4: Real estate taxes set to grow faster, 421a step-ups. " "

421-a burn-off in New York and inflation “a little discouraging,” potentially pushing expenses above 3%. "

Recurring concern as a key expense driver.

Utilizing concessions in markets with oversupply

Q2: Concessions widespread in Seattle, SF, LA, Sun Belt. " " " Q1: Heavy use in Dallas, Austin. " Q4: 70% of concessions in Seattle/SF. " "

Los Angeles uses concessions to prioritize occupancy; Seattle concessions down 40% YoY. " "

Steady strategy to combat supply challenges.

Shifting sentiment around Seattle and San Francisco

Q2: Noted strong traffic and partial rebound. " Q1: Called “show-me stories” but signs of improvement. " " Q4: Cautious optimism with some urban recovery. " "

Improved outlook: Seattle aided by Amazon jobs/RTO; SF benefiting from Salesforce’s RTO and 96.2% occupancy. " "

Progressively more positive over the last few quarters.

Deployment of leverage for acquisitions despite tight spreads

Q2: No direct mention. Q1: Cautious given tight cap rate vs. debt spreads. " Q4: No specific detail, but noted cost of funds near 5%. "

Emphasizes acquiring below replacement cost with limited spread to cost of debt; sees quick compression in apartment asset class. "

Reaffirmed approach in Q3, underscores basis-driven deals.

Ongoing operational efficiencies and technology initiatives

Q2: AI resident assistant pilot, self-guided tours. " Q1: AI leasing assistant “Ella” success. " Q4: Discussed general tech improvements, no explicit AI mention. "

Launched AI tool for resident inquiries, covering 60–80% of requests; continuing to centralize operations. " "

Continual expansion in AI and centralized ops.

Anticipated outsized rent growth in 3rd/4th year post-acquisition

Q2: Suggested up to 5% rent growth mid-term, once supply eases. " Q1/Q4: Not discussed.

Projects 4.5% rent growth achievable in years 3–4. "

Recently highlighted as a mid-term growth thesis.

Continued margin pressures from taxes, WiFi, rising expenses

Q2: Taxes remain the toughest expense; no WiFi mention. " Q1/Q4: Overall inflation concerns noted, but details less explicit. " "

Bulk WiFi adds revenue but also cost; 421-a burn-off and inflation continue squeezing margins. " " "

Heightened focus on offsetting new recurring costs.

Stable/high occupancy (96%) supporting revenue

Q2: 96.4% occupancy; key driver of outperformance. " " Q1: 96.5% occupancy, strong spring leasing. " Q4: Ended 96%, good start to next year. "

Portfolio at 96.1% occupancy, strong retention (lowest Q3 turnover). " "

Consistently robust occupancy despite market headwinds.

Expansion markets with high supply, negative same-store

Q2: Rent challenges expected to continue but eventual relief as starts decline. " " Q1: Concessions common; negative rent trends. " Q4: Dallas/Austin under pressure, negative revenue outlook. " "

Atlanta, Dallas, Denver face oversupply, pressure on same-store revenue until at least 2026. " " "

Ongoing weakness due to aggressive new deliveries.

Bad debt and extended eviction timelines (e.g. Los Angeles)

Q2: Eviction backlogs clearing, 30 bps revenue lift. " " Q1: Noted improvement but still 6-month delays. " " Q4: 1.5% bad debt, lengthy LA evictions. " "

LA backlog down to 4-month evictions (from 6), bad debt near 1%, improved from pandemic but above normal. " "

Steadily improving, but still elevated vs. pre-COVID.

Elevated capital expenditures (renovations, sustainability)

Q2: Expanded CapEx disclosures for ROI projects. " Q1: 3,800 units, 40% higher CapEx, focusing on renovations and deferred maintenance. " Q4: No mention.

No direct mention in Q3.

Not mentioned this quarter.

Potential large future impact from RTO & AI-related jobs

Q2: Salesforce RTO supporting SF; AI initiatives primarily ops-focused. " " Q1: AI sector a future driver in SF. " Q4: No explicit reference.

Seattle boosted by Amazon RTO; SF by Salesforce RTO and AI sector’s growth potential. " "

Increasing discussion as tech jobs and RTO mandates shape housing demand.