May 6th, 2026

The call highlighted multiple operational and financial strengths: solid income and FFO growth, same-home NOI improvement, strong spring leasing momentum with record March leasing, disciplined capital recycling (dispositions) and significant share repurchases, and a beneficial insurance renewal. Management reiterated unchanged 2026 guidance and emphasized operational execution and flexibility in the development program. Offsetting considerations include a slightly delayed leasing season start, market-specific supply pressures (notably Arizona and Texas), regulatory uncertainty around build-to-rent legislation that has paused some transaction activity, modest leverage (5.3x) with limited cash, and potential inflationary pressures on future development costs. On balance, the positives around earnings, leasing recovery, capital recycling, and cost control materially outweigh the operational and regulatory headwinds discussed.

Company Guidance

Management left 2026 guidance unchanged, citing a slower January–February followed by strong seasonal leasing that drove record March volumes and April momentum (new lease spreads improving to 1.2%, same‑home average occupied days 95.6%, +30 bps sequential), and reported strong same‑home core NOI growth of 3.7% for the quarter; quarterly results included net income of $128M ($0.35/diluted share), core FFO $0.48 (up 4.6% YoY) and adjusted FFO $0.45 (up 8% YoY). On the investment and capital front they delivered 539 development homes in Q1 (457 wholly‑owned at ~$187M cost) at a 5.3% average initial yield, sold >700 homes for roughly $200M net proceeds with an average disposition yield in the ~4% area, and repurchased about $360M of common stock (~3% of shares/units) over six months (with >$400M authorization remaining); balance sheet metrics included net debt (incl. preferred) to adjusted EBITDA of 5.3x, ~$63M cash, and $390M drawn on a $1.25B revolver. Management reiterated plans to “control the controllables,” pursue moderated on‑balance development match‑funded by dispositions, target renewals around ~3% (Q1 was 3.2%, mailing into Q3 in the mid‑3%s), expects occupancy to build in H1 with rate to follow, and noted insurance renewals were ~10% lower while property tax guidance remains ~3% for the year.