Q4 2025 Invitation Homes Earnings Call

February 19, 2026

Operator: Welcome to the Invitation Homes Q4 2025 Earnings Conference Call. All participants are in listen-only mode at this time. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead.

Speaker #2: As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations.

Speaker #2: Please go ahead. Thank you, Operator, and good morning. Joining me today from invitation Homes are Dallas Tanner, our President and Chief Executive Officer; Scott Isen, our Chief Investment Officer; Tim Lobner, our Chief Operating Officer; and John Olsen, our Chief Financial Officer.

Scott McLaughlin: Thank you, operator, and good morning. Joining me today from Invitation Homes are Dallas Tanner, our President and Chief Executive Officer; Scott Eisen, our Chief Investment Officer; Tim Lobner, our Chief Operating Officer; and John Olson, our Chief Financial Officer. Following our prepared remarks, we'll open the line for questions from our covering sell-side analysts. During today's call, we may reference our Q4 2025 earnings release and supplemental information. We issued this document yesterday afternoon after the market closed, and it is available on the investor relations section of our website at www.invh.com. Certain statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other non-historical statements, which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated.

Speaker #2: Following our prepared remarks, we'll open the line for questions from our covering sell-side analysts. During today's call, we may reference our fourth quarter 2025 earnings release and supplemental information.

Scott McLaughlin: During today's call, we may reference our Q4 2025 earnings release and supplemental information. We issued this document yesterday afternoon after the market closed, and it is available on the investor relations section of our website at www.invh.com.

Speaker #2: We issued this document yesterday afternoon after the market closed, and it is available on the Investor Relations section of our website at www.invh.com. Certain statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other non-historical statements, which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated.

Scott McLaughlin: Certain statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other non-historical statements, which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated.

Speaker #2: We describe some of these risks and uncertainties in our 2024 annual report on Form 10-K and other filings we make with the SEC from time to time.

Scott McLaughlin: We describe some of these risks and uncertainties in our 2024 annual report on Form 10-K and other filings we make with the SEC from time to time. Except to the extent otherwise required by law, we do not update forward-looking statements and expressly disclaim any obligation to do so. We may also discuss certain non-GAAP financial measures during the call. You can find additional information regarding these non-GAAP measures, including reconciliations to the most comparable GAAP measures, in yesterday's earnings release. With that, I'll now turn the call over to Dallas Tanner. Go ahead, Dallas.

Speaker #2: Except to the extent otherwise required by law, we do not update forward-looking statements and expressly disclaim any obligation to do so. We may also discuss certain non-GAAP financial measures during the call.

Scott McLaughlin: We may also discuss certain non-GAAP financial measures during the call. You can find additional information regarding these non-GAAP measures, including reconciliations to the most comparable GAAP measures, in yesterday's earnings release. With that, I'll now turn the call over to Dallas Tanner. Go ahead, Dallas.

Speaker #2: You can find additional information regarding these non-GAAP measures including reconciliations to the most comparable GAAP measures in yesterday's earnings release. With that, I'll now turn the call over to Dallas Tanner.

Speaker #2: Go ahead, Dallas.

Speaker #3: Good morning, everyone, and thanks for joining us today. I want to start by thanking our residents for the trust they place in us. That trust is central to our business, and we work every day to earn it through strong service, clear communication, and a better resident experience.

Dallas Tanner: ... Good morning, everyone, and thanks for joining us today. I want to start by thanking our residents for the trust they place in us. That trust is central to our business, and we work every day to earn it through strong service, clear communication, and a better resident experience. This morning, I'd like to spend a few minutes on three areas. First, housing affordability. Second, our recent acquisition of ResiBuilt Homes, which gives us in-house development capability. And third, our long-term objectives as we head further into 2026. Let me begin with housing affordability, an issue that continues to draw significant attention and represents a significant challenge for many Americans. Renting provides an attractive alternative for many households, which is why, since 1965, about 1/3 of all Americans have rented their home.

Dallas Tanner: Good morning, everyone, and thanks for joining us today. I want to start by thanking our residents for the trust they place in us. That trust is central to our business, and we work every day to earn it through strong service, clear communication, and a better resident experience. This morning, I'd like to spend a few minutes on three areas. First, housing affordability.

Speaker #3: This morning, I'd like to spend a few minutes on three areas: first, housing affordability; second, our recent acquisition of Resibuilt Homes which gives us in-house development capability; and third, our long-term objectives as we head further into 2026.

Dallas Tanner: Second, our recent acquisition of ResiBuilt Homes, which gives us in-house development capability. And third, our long-term objectives as we head further into 2026. Let me begin with housing affordability, an issue that continues to draw significant attention and represents a significant challenge for many Americans. Renting provides an attractive alternative for many households, which is why, since 1965, about 1/3 of all Americans have rented their home.

Speaker #3: Let me begin with housing affordability, an issue that continues to draw significant attention and represents a significant challenge for many Americans. Renting provides an attractive alternative for many households.

Speaker #3: Which is why, since 1965, about one-third of all Americans have rented their home. Yet, with only 10% of multifamily apartments offering three bedrooms or more, there is a clear gap in family-oriented rental options.

Dallas Tanner: Yet, with only 10% of multifamily apartments offering three bedrooms or more, there is a clear gap in family-oriented rental options. This is where we're proud to lead, providing homes for growing families seeking value, services, and convenience in the neighborhoods they care about. As a result of this focus, we have a clear view of the needs of our customer base, including many first responders, healthcare workers, teachers, veterans, and other vital community members. We're committed to providing them with well-maintained, high-quality homes, and that commitment matters even more today, as higher home prices, elevated interest rates, and large upfront costs have put buying a home out of reach for many households.

Speaker #3: This is where we're proud to lead. Providing homes for growing families seeking value services and convenience in the neighborhoods they care about. As a result of this focus, we have a clear view of the needs of our customer base, including many first responders, healthcare workers, teachers, veterans, and other vital community members.

Speaker #3: We are committed to providing them with well-maintained, high-quality homes. And that commitment matters even more today as higher home prices elevated interest rates, and large upfront costs have put buying a home out of reach for many households.

Dallas Tanner: We're committed to providing them with well-maintained, high-quality homes, and that commitment matters even more today, as higher home prices, elevated interest rates, and large upfront costs have put buying a home out of reach for many households.

Speaker #3: According to data from John Burns, residents in our market save nearly $12,000 a year on average by renting their homes. Helping families manage their budgets, build savings, and access schools and neighborhoods that might otherwise be out of reach.

Dallas Tanner: According to data from John Burns, residents in our market save nearly $12,000 a year on average by renting their homes, helping families manage their budgets, build savings, and access schools and neighborhoods that might otherwise be out of reach. For residents ready to take the next step, we help them prepare for it. Historically, more than 20% of our move-outs have been residents who purchased their own home. One way we support that journey is by offering a free, company-funded credit-building program that reports positive rent payments to the credit bureaus. This allows our residents to build credit from the rent they already pay with us, a benefit most smaller landlords don't or can't offer. We have more than 160,000 residents today currently enrolled, with residents having seen an average credit score increase of 50 points.

Speaker #3: And for residents ready to take the next step, we help them prepare for it. Historically, more than 20% of our move-outs have been residents who purchased their own home.

Speaker #3: One way we support that journey is by offering a free company-funded credit building program that reports positive rent payments to the credit bureaus. This allows our residents to build credit from the rent they already pay with us.

Dallas Tanner: One way we support that journey is by offering a free, company-funded credit-building program that reports positive rent payments to the credit bureaus. This allows our residents to build credit from the rent they already pay with us, a benefit most smaller landlords don't or can't offer. We have more than 160,000 residents today currently enrolled, with residents having seen an average credit score increase of 50 points.

Speaker #3: A benefit most smaller landlords don't or can't offer. We have more than 160,000 residents today currently enrolled, with residents having seen an average credit score increase of 50 points.

Speaker #3: This strengthens their financial foundation, lowers borrowing costs, and improves their ability to qualify for a mortgage when the time is right. Of course, housing affordability is fundamentally a supply issue, which brings me to my second point.

Dallas Tanner: This strengthens their financial foundation, lowers borrowing costs, and improves their ability to qualify for a mortgage when the time is right. Of course, housing affordability is fundamentally a supply issue, which brings me to my second point. One of the most constructive ways we can help is by adding more homes to the markets we serve. While our home builder partnerships have supported that effort for years, our acquisition of ResiBuilt expands it even further and improves our control over cost, product quality, and delivery pace. ResiBuilt is already delivering homes at a pace of over 1,000 homes per year in its fee build business. We expect to grow on that foundation over time to add even more high-quality homes for Americans where demand remains strong. And that leads me to the third topic I outlined this morning, which is our long-term objectives.

Speaker #3: One of the most constructive ways we can help is by adding more homes to the markets we serve. While our homebuilder partnerships have supported that effort for years, our acquisition of ResiBuilt expands it even further.

Speaker #3: And improves our control over cost, product quality, and delivery pace. Resibuilt is already delivering homes at a pace of over 1,000 homes per year in its fee-build business, we expect to grow on that foundation over time to add even more high-quality homes for Americans where demand remains strong.

Dallas Tanner: ResiBuilt is already delivering homes at a pace of over 1,000 homes per year in its fee build business. We expect to grow on that foundation over time to add even more high-quality homes for Americans where demand remains strong. And that leads me to the third topic I outlined this morning, which is our long-term objectives.

Speaker #3: And that leads me to the third topic I outlined this morning, which is our long-term objectives. We laid these out at our November Investor Day, and they continue to guide how we're going to operate in the future.

Dallas Tanner: We laid these out at our November Investor Day, and they continue to guide how we're going to operate in the future. They include, first, delivering attractive same-store NOI growth. Second, allocating capital thoughtfully across accretive growth opportunities and share repurchases. Third, using our scale and technology to drive efficiencies and elevate the resident experience. And fourth, maintaining a strong balance sheet. Looking back over the past year, we made meaningful progress on each of these priorities. We continued to strengthen our platform and improve the resident experience. We took an important step toward expanding future housing options with the ResiBuilt acquisition. As we move further into 2026, we are reaffirming these objectives with a focus on controlling what we can control. That discipline will continue to guide our decisions as we work to deliver value for residents and shareholders while expanding housing choice and flexibility in our communities.

Speaker #3: They include: first, delivering attractive same-store NOI growth; second, allocating capital thoughtfully across accretive growth opportunities in share repurchases; third, using our scale and technology to drive efficiencies and elevate the resident experience.

Speaker #3: And fourth, maintaining a strong balance sheet. Looking back over the past year, we made meaningful progress on each of these priorities. We continue to strengthen our platform and improve the resident experience.

Dallas Tanner: Looking back over the past year, we made meaningful progress on each of these priorities. We continued to strengthen our platform and improve the resident experience. We took an important step toward expanding future housing options with the ResiBuilt acquisition.

Speaker #3: We took an important step toward expanding future housing options with the Resibuilt acquisition. As we move further into 2026, we are reaffirming these objectives with a focus on controlling what we can control.

Dallas Tanner: As we move further into 2026, we are reaffirming these objectives with a focus on controlling what we can control. That discipline will continue to guide our decisions as we work to deliver value for residents and shareholders while expanding housing choice and flexibility in our communities.

Speaker #3: That discipline will continue to guide our decisions as we work to deliver value for residents and shareholders, while expanding housing choice and flexibility in our communities.

Speaker #3: At the center of our work is a commitment to the people we serve and the people who make our progress possible. To our residents, associates, and shareholders, thank you for your continued trust and partnership.

Dallas Tanner: At the center of our work is a commitment to the people we serve and the people who make our progress possible. To our residents, associates, and shareholders, thank you for your continued trust and partnership. Now, before we turn the call over to Tim to discuss our operating results, I've asked Scott Eisen to share a few more details on the ResiBuilt acquisition. Scott?

Speaker #3: Now, before we turn the call over to Tim to discuss our operating results, I've asked Scott Eisen to share a few more details on the Resibuilt acquisition.

Speaker #3: Scott?

Speaker #2: Thanks, Dallas. We're excited to welcome the Resibuilt team to invitation Homes. This acquisition accelerates our in-house development capabilities while keeping our upfront approach asset and capital light.

Scott Eisen: Thanks, Dallas. We're excited to welcome the ResiBuilt team to Invitation Homes. This acquisition accelerates our in-house development capabilities while keeping our upfront approach, asset and capital light. ResiBuilt is a best-in-class builder of single-family rental homes, having delivered over 4,000 homes since 2018 in Georgia, Florida, and the Carolinas. Around 70 ResiBuilt employees have joined us, and the team will continue operating under the award-winning ResiBuilt brand. Leading the platform is Jay Byce, a highly respected leader in the build-to-rent development space. Jay will continue serving as president of ResiBuilt and report directly to me. Today, ResiBuilt has 23 active fee build contracts with over 2,000 home starts planned for 2026 and beyond. We expect nearly all near-term activity to remain third-party fee-based, generating capital-light earnings and providing modest accretion to 2026 AFFO.

Speaker #2: Resibuilt is a best-in-class builder of single-family rental homes, having delivered over 4,000 homes since 2018 in Georgia, Florida, and the Carolinas. Around 70 Resibuilt employees have joined us, and the team will continue operating under the award-winning Resibuilt brand.

Speaker #2: Leading the platform is Jay Bise, a highly respected leader in the build-to-rent development space. Jay will continue serving as president of Resibuilt and report directly to me.

Scott Eisen: Leading the platform is Jay Byce, a highly respected leader in the build-to-rent development space. Jay will continue serving as president of ResiBuilt and report directly to me. Today, ResiBuilt has 23 active fee build contracts with over 2,000 home starts planned for 2026 and beyond. We expect nearly all near-term activity to remain third-party fee-based, generating capital-light earnings and providing modest accretion to 2026 AFFO.

Speaker #2: Today, Resibuilt has 23 active fee-build contracts with over 2,000 home starts planned for 2026 and beyond. We expect nearly all near-term activity to remain third-party fee-based generating capital light earnings and providing modest accretion to 2026 AFFO.

Scott Eisen: Beyond this currently contracted work, ResiBuilt offers opportunities to develop around 1,500 lots in Atlanta, Charlotte, and Orlando. Over time, we expect to selectively develop homes for the Invitation Homes balance sheet and for our JV partners. Together, ResiBuilt's capabilities elevate our long-term supply strategy by giving us greater command over product, location, and timing. We expect to unlock new operational efficiencies, achieve more seamless integration, and gain stronger control and foresight across our growth pipeline. These capabilities also provide additional flexibility, while complementing the strong relationships we maintain with our national home builder and joint venture partners. In short, ResiBuilt strengthens our foundation for future growth and expands the housing options available to families across our markets. With that, I'll turn it over to Tim to walk through our Q4 and full year operating results.

Speaker #2: Beyond this currently contracted work, Resibuilt offers opportunities to develop around 1,500 lots in Atlanta, Charlotte, and Orlando. Over time, we expect to selectively develop homes for the invitation Homes balance sheet and for our JV partners.

Speaker #2: Together, Resibuilt's capabilities elevate our long-term supply strategy by giving us greater command over product, location, and timing. We expect to unlock new operational efficiencies, achieve more seamless integration, and gain stronger control and foresight across our growth pipeline.

Scott Eisen: We expect to unlock new operational efficiencies, achieve more seamless integration, and gain stronger control and foresight across our growth pipeline. These capabilities also provide additional flexibility, while complementing the strong relationships we maintain with our national home builder and joint venture partners.

Speaker #2: These capabilities also provide additional flexibility while complementing the strong relationships we maintain with our national homebuilder and joint venture partners. In short, Resibuilt strengthens our foundation for future growth and expands the housing options available to families across our markets.

Scott Eisen: In short, ResiBuilt strengthens our foundation for future growth and expands the housing options available to families across our markets. With that, I'll turn it over to Tim to walk through our Q4 and full year operating results.

Speaker #2: With that, I'll turn it over to Tim to walk through our fourth quarter and full-year operating results.

Speaker #3: Thank you, Scott, and good morning, everyone. Our fourth quarter and full-year operating results highlight the strength of our platform, the dedication of our associates, and the trust our residents place in us.

Tim Lobner: Thank you, Scott, and good morning, everyone. Our fourth quarter and full year operating results highlight the strength of our platform, the dedication of our associates, and the trust our residents place in us. For the full year 2025, we delivered solid same-store performance, with same-store NOI growth of 2.3%, finishing above the midpoint of our guidance range. This was driven by 2.4% core revenue growth and 2.6% core expense growth. In the fourth quarter, same-store NOI grew 0.7% year-over-year, supported by 1.7% growth in core revenues and a 4% increase in core expenses. Resident satisfaction continues to be a central focus and a differentiator for Invitation Homes. Turnover remained low during 2025 at 22.8%, consistent with the prior year, and average length of stay remained well over three years.

Speaker #3: For the full year 2025, we delivered solid same-store performance, with same-store NOI growth of 2.3%, finishing above the midpoint of our guidance range. This was driven by 2.4% core revenue growth and 2.6% core expense growth.

Tim Lobner: This was driven by 2.4% core revenue growth and 2.6% core expense growth. In the fourth quarter, same-store NOI grew 0.7% year-over-year, supported by 1.7% growth in core revenues and a 4% increase in core expenses. Resident satisfaction continues to be a central focus and a differentiator for Invitation Homes. Turnover remained low during 2025 at 22.8%, consistent with the prior year, and average length of stay remained well over three years.

Speaker #3: In the fourth quarter, same-store NOI grew 0.7% year over year, supported by 1.7% growth in core revenues and a 4% increase in core expenses.

Speaker #3: Resident satisfaction continues to be a central focus and a differentiator for invitation Homes. Turnover remained low during 2025 at 22.8%, consistent with the prior year, and average length of stay remained well over three years.

Speaker #3: In addition, same-store average occupancy for the year was 96.8%, landing at the high end of our 2025 guidance. These metrics all underscore the stability of our resident base and the quality of the service we provide.

Tim Lobner: In addition, Same-Store average occupancy for the year was 96.8%, landing at the high end of our 2025 guidance. These metrics all underscore the stability of our resident base and the quality of the service we provide. Turning now to Same-Store leasing performance. Q4 Blended Rent Growth was 1.8%. This reflected strong renewal rent growth of 4.2%, which more than offset a 4.1% decline in new lease rates, given that renewals account for about 75% of our total lease book. In January, occupancy held just under 96%, and blended lease rate growth improved by 30 basis points from the prior month to 1.5%. Renewal growth was roughly flat, with December at about 4%, while new lease rates were down 4.2%.

Speaker #3: Turning now to same-store leasing performance, fourth quarter blended rent growth was 1.8%. This reflected strong renewal rent growth of 4.2%, which more than offset a 4.1% decline in new lease rates given that renewals account for about 75% of our total lease book.

Tim Lobner: This reflected strong renewal rent growth of 4.2%, which more than offset a 4.1% decline in new lease rates, given that renewals account for about 75% of our total lease book. In January, occupancy held just under 96%, and blended lease rate growth improved by 30 basis points from the prior month to 1.5%. Renewal growth was roughly flat, with December at about 4%, while new lease rates were down 4.2%.

Speaker #3: In January, occupancy held just under 96% and blended lease rate growth improved by 30 basis points from the prior month to 1.5%. Renewal growth was roughly flat with December at about 4% while new lease rates were down 4.2%.

Tim Lobner: Performance over the past few winter months was broadly in line with our expectations for this time of year and reflects the effect of targeted specials in some of our slower markets, where supply has exceeded near-term demand. These concessions helped support steadier occupancy through the softer seasonal period, which should better position us as we move into the spring leasing season. Looking ahead, we remain fully committed to achieving the $0.14 to $0.20 of incremental AFFO per share growth over the next three years that we expect on top of our baseline growth, as we outlined at our Investor Day. Operational enhancements are expected to provide roughly half of the projected AFFO growth, and our team remains focused on executing the initiatives to unlock this incremental value. In the meantime, our mission of elevating the customer experience continues to guide our decisions and our daily execution.

Speaker #3: Performance over the past few winter months was broadly in line with our expectations for this time of year. And reflects the effect of targeted specials in some of our slower markets, where supply has exceeded near-term demand.

Speaker #3: These concessions helped support steadier occupancy through the softer seasonal period, which should better position us as we move into the spring leasing season. Looking ahead, we remain fully committed to achieving the $0.14 to $0.20 of incremental AFFO per share growth over the next three years that we expect on top of our baseline growth, as we outlined at our investor day.

Tim Lobner: Looking ahead, we remain fully committed to achieving the $0.14 to $0.20 of incremental AFFO per share growth over the next three years that we expect on top of our baseline growth, as we outlined at our Investor Day. Operational enhancements are expected to provide roughly half of the projected AFFO growth, and our team remains focused on executing the initiatives to unlock this incremental value. In the meantime, our mission of elevating the customer experience continues to guide our decisions and our daily execution.

Speaker #3: Operational enhancements are expected to provide roughly half of the projected AFFO growth and our team remains focused on executing the initiatives to unlock this incremental value.

Speaker #3: In the meantime, our mission of elevating the customer experience continues to guide our decisions and our daily execution. We are making steady progress modernizing our service model, expanding the use of centralized functions where they can improve speed, consistency, and quality, and giving our teams better tools to serve our residents more effectively.

Tim Lobner: We are making steady progress modernizing our service model, expanding the use of centralized functions where they can improve speed, consistency, and quality, and giving our teams better tools to serve our residents more effectively. These efforts also tie directly into how we control the controllables across the business. There's still more work to do, but we continue to believe our initiatives will drive higher satisfaction and stronger long-term operating performance over the next few years. I'd like to thank all of our teams for their commitment to this work and for the progress they're delivering. With that, I'll turn the call over to John.

Speaker #3: These efforts also tie directly into how we control the controllables across the business. There's still more work to do, but we continue to believe our initiatives will drive higher satisfaction and stronger long-term operating performance over the next few years.

Tim Lobner: There's still more work to do, but we continue to believe our initiatives will drive higher satisfaction and stronger long-term operating performance over the next few years. I'd like to thank all of our teams for their commitment to this work and for the progress they're delivering. With that, I'll turn the call over to John.

Speaker #3: I'd like to thank all of our teams for their commitment to this work and for the progress they're delivering. With that, I'll turn the call over to John.

Speaker #2: Thanks, Tim. This morning, I'll cover three topics. First, our balance sheet and fourth quarter and full-year financial performance, and third, our 2026 guidance. Starting with the balance sheet, we continue to maintain a conservative leverage profile that supports our investment-grade ratings.

Jonathan Olsen: Thanks, Tim. This morning, I'll cover 3 topics. First, our balance sheet and liquidity position. Second, our Q4 and full year financial performance. And third, our 2026 guidance. Starting with the balance sheet, we continue to maintain a conservative leverage profile that supports our investment-grade ratings. We ended the year with $1.7 billion in total liquidity, including unrestricted cash and undrawn capacity on our revolving credit facility. In addition, our year-end net debt to adjusted EBITDA ratio remained at 5.3 times. Approximately 94% of our total debt was either fixed rate or swapped to fixed rate, and approximately 90% of our wholly owned homes were unencumbered. We have no debt reaching final maturity before June 2027. As previously announced, in October, our board of directors authorized a $500 million share repurchase program.

Speaker #2: We ended the year with 1.7 billion dollars in total liquidity, including unrestricted cash and undrawn capacity on our revolving credit facility. In addition, our year-end net debt-to-adjusted EBITDA ratio remained at 5.3 times, approximately 94% of our total debt was either fixed rate or swapped to fixed rate, and approximately 90% of our wholly owned homes were unencumbered.

Jonathan Olsen: In addition, our year-end net debt to adjusted EBITDA ratio remained at 5.3 times. Approximately 94% of our total debt was either fixed rate or swapped to fixed rate, and approximately 90% of our wholly owned homes were unencumbered. We have no debt reaching final maturity before June 2027. As previously announced, in October, our board of directors authorized a $500 million share repurchase program.

Speaker #2: We have no debt reaching final maturity before June 2027. As previously announced in October, our board of directors authorized a $500 million share repurchase program.

Speaker #2: Since that time, we've repurchased 3.6 million shares totaling approximately 100 million dollars. We see meaningful value in our shares and expect to continue repurchasing as opportunities permit.

Jonathan Olsen: Since that time, we've repurchased 3.6 million shares, totaling approximately $100 million. We see meaningful value in our shares and expect to continue repurchasing as opportunities permit. Turning now to our financial results. Core FFO for Q4 increased 1.3% year-over-year to $0.48 per share, while Core FFO for the full year was up 1.7% to $1.91 per share, primarily due to NOI growth. AFFO for Q4 was generally flat year-over-year at $0.41 per share, while AFFO for the full year grew by 1.8% to $1.63 per share. The last thing I'll discuss is our full-year 2026 guidance.

Speaker #2: Turning now to our financial results, core FFO for the fourth quarter increased 1.3% year over year, to $0.48 per share. While core FFO for the full year was up 1.7%, to $1.91 per share, primarily due to NOI growth.

Jonathan Olsen: Core FFO for Q4 increased 1.3% year-over-year to $0.48 per share, while Core FFO for the full year was up 1.7% to $1.91 per share, primarily due to NOI growth. AFFO for Q4 was generally flat year-over-year at $0.41 per share, while AFFO for the full year grew by 1.8% to $1.63 per share. The last thing I'll discuss is our full-year 2026 guidance.

Speaker #2: AFFO for the fourth quarter was generally flat year over year at 41 cents per share, while AFFO for the full year grew by 1.8% to $1.63 per share.

Speaker #2: The last thing I'll discuss is our full-year 2026 guidance. This includes our expectation for same-store NOI growth in a range between 0.3% and 2%, driven by expected same-store core revenue growth in a range between 1.3% and 2.5%, and same-store core expense growth in the range between 3% and 4%.

Jonathan Olsen: This includes our expectation for same-store NOI growth in a range between 0.3% and 2%, driven by expected same-store core revenue growth in a range between 1.3% and 2.5%, and same-store core expense growth in the range between 3% and 4%. Our same-store core revenue growth guidance assumes average occupancy of 96.3% at the midpoint, while we expect same-store blended rent growth in the mid-2% range. In addition, our outlook incorporates approximately $550 million of dispositions at the midpoint, which we expect to serve as the primary funding source for additional share repurchases and $250 million of anticipated wholly owned new home deliveries at the midpoint.

Speaker #2: Our same-store core revenue growth guidance assumes average occupancy of 96.3% at the midpoint. While we expect same-store blended rent growth in the mid-2% range, in addition, our outlook incorporates approximately $550 million of dispositions at the midpoint, which we expect to serve as the primary funding source for additional share repurchases, and $250 million of anticipated wholly owned new home deliveries at the midpoint.

Jonathan Olsen: In addition, our outlook incorporates approximately $550 million of dispositions at the midpoint, which we expect to serve as the primary funding source for additional share repurchases and $250 million of anticipated wholly owned new home deliveries at the midpoint.

Speaker #2: Together, these assumptions result in full year 2026 core FFO guidance of $1.90 to $1.98 per share and AFFO of $1.60 to $1.68 per share.

Jonathan Olsen: Together, these assumptions result in full year 2026 Core FFO guidance of $1.90 to $1.98 per share, and AFFO of $1.60 to $1.68 per share. For complete details of our 2026 guidance assumptions, including a bridge from 2025 Core FFO to our 2026 guidance midpoint, please refer to last night's earnings release. As we embark further into the new year, we believe our operating discipline, capital allocation strategy, and strengthened development capabilities support our ability to remain nimble and focused while continuing to serve residents with quality and Genuine Care. Combined with a solid balance sheet, clear priorities, and steady progress across the business, we believe we are well positioned to deliver long-term value for our shareholders and the families who call our homes their own. That concludes our prepared remarks. Operator, please open the line for questions.

Speaker #2: For complete details of our 2026 guidance assumptions, including a bridge from 2025 core FFO to our 2026 guidance midpoint, please refer to last night's earnings release.

Jonathan Olsen: As we embark further into the new year, we believe our operating discipline, capital allocation strategy, and strengthened development capabilities support our ability to remain nimble and focused while continuing to serve residents with quality and Genuine Care.

Speaker #2: As we embark further into the new year, we believe our operating discipline, capital allocation strategy, and strengthened development capabilities support our ability to remain nimble and focused, while continuing to serve residents with quality and genuine care.

Jonathan Olsen: Combined with a solid balance sheet, clear priorities, and steady progress across the business, we believe we are well positioned to deliver long-term value for our shareholders and the families who call our homes their own. That concludes our prepared remarks. Operator, please open the line for questions.

Speaker #2: Combined with a solid balance sheet, clear priorities, and steady progress across the business, we believe we are well-positioned to deliver long-term value for our shareholders.

Speaker #2: And the families who call our homes their own. That concludes our prepared remarks. Operator, please open the line for questions.

Operator: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. We kindly ask that you limit yourself to one question for today's call and return to the queue for any additional. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Yana Gallin with Bank of America. Please go ahead.

Speaker #4: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again.

Speaker #4: We kindly ask that you limit yourself to one question for today's call and return to the queue for any additional. We will pause for just a moment to compile the Q&A roster.

Speaker #4: Your first question comes from the line of Yana Gallen with Bank of America. Please go ahead.

Jana Galan: Thank you. Good morning. Thinking about your expectations for same-store blended rent growth in the mid 2% range, just curious, kind of the, kind of quarter to date. It sounded like you said 1.5%, so far for blended lease growth. Just how does that track, and then how are you kind of anticipating the peak leasing season to play out this year?

Speaker #5: Thank you, good morning. Thinking about your expectations for same-store blended rent growth in the mid-2% range, just curious kind of the kind of quarter-to-date, it sounded like you said 1.5% so far for blended lease growth.

Speaker #5: Just how does that track, and then how are you kind of anticipating the peak leasing season to play out this year?

Jonathan Olsen: Hey, Yana, it's John. I'll take the first part and then see if Tim wants to add any color. You know, I think the, the mid 2% blend aligns with, you know, where our guidance is coming out. I think, you know, 6, 7 weeks into the year, we've only just gotten into peak leasing season, so I think it's a little bit premature to draw any conclusions based on what we've seen thus far. I would note that, you know, in terms of top of funnel demand, you know, lead volume feels very healthy compared to last year. I think the challenge for us at the moment, and, and you know, this was true in Q4 as well, was just the amount of available inventory on our book and in some of the markets where we operate.

Jonathan Olsen: Hey, Jana, it's John. I'll take the first part and then see if Tim wants to add any color. You know, I think the, the mid 2% blend aligns with, you know, where our guidance is coming out. I think, you know, 6, 7 weeks into the year, we've only just gotten into peak leasing season, so I think it's a little bit premature to draw any conclusions based on what we've seen thus far.

Speaker #2: Hey, Yana, it's John. I'll take the first part and then see if Tim wants to add any color. You know, I think the mid-2% blend aligns with, you know, where our guidance is coming out.

Speaker #2: I think, you know, six, seven weeks into the year, we've only just gotten into peak leasing season. So, I think it's a little bit premature to draw any conclusions based on what we've seen thus far.

Jonathan Olsen: I would note that, you know, in terms of top of funnel demand, you know, lead volume feels very healthy compared to last year. I think the challenge for us at the moment, and, and you know, this was true in Q4 as well, was just the amount of available inventory on our book and in some of the markets where we operate.

Speaker #2: I would note that, you know, in terms of top-of-funnel demand, you know, lead volume feels very healthy. Compared to last year, I think the challenge for us at the moment—and, you know, this was true in the fourth quarter as well—was just the amount of available inventory on our book and in some of the markets where we operate.

Jonathan Olsen: So I think time will tell. You know, we'll know a lot more about how peak season shapes up, you know, the next time we get together. But I would note that each of the last few years, the nature, timing, and kind of shape of the demand curve in peak season has changed. So we just wanna be, we wanna be judicious in terms of the assumptions we make about the blend.

Speaker #2: So I think time will tell. You know, we'll know a lot more about how peak season shapes up, you know, the next time we get together.

Speaker #2: But I would note that each of the last few years, the nature, timing, and kind of shape of the demand curve in peak season has changed.

Speaker #2: So we just want to be we want to be judicious in terms of the assumptions we make about the blend.

Tim Lobner: Yeah. Thanks, John. And I'll add, look, you know, supply and demand dictates, dictates our pricing. Supply, we talked about this on past calls, has been slightly elevated in a few of our core markets, namely Florida, Texas, and Arizona. But we are seeing those supply levels come down, and as John mentioned, you know, our peak season really starts right after Super Bowl, goes into mid-summer. We're seeing healthy demand, and we look at that through a variety of different metrics. But, you know, our lead volume remains strong, clearly a strong indicator that there is demand for single-family housing. We will continue to see over the next couple of months, our spreads between renewal growth and new lease growth narrow, as our new lease growth expands.

Speaker #3: Yeah, thanks, John. And I'll add, look, you know, supply and demand dictates our pricing. Supply, we talked about this on past calls, has been slightly elevated in a few of our core markets.

Speaker #3: Namely, Florida, Texas, and Arizona. But we are seeing those supply levels come down. And as John mentioned, you know, our peak season really starts right after Super Bowl, goes into mid-summer.

Speaker #3: We're seeing healthy demand, and we look at that through a variety of different metrics. But, you know, our lead volume remains strong—clearly a strong indicator that there is demand for single-family housing.

Tim Lobner: We're seeing healthy demand, and we look at that through a variety of different metrics. But, you know, our lead volume remains strong, clearly a strong indicator that there is demand for single-family housing. We will continue to see over the next couple of months, our spreads between renewal growth and new lease growth narrow, as our new lease growth expands.

Speaker #3: We will continue to see, over the next couple of months, our spreads between renewal growth and new lease growth narrow, as our new lease growth expands.

Speaker #3: Right now, I'll add that we don't have any concessions on our scatter site product. We use that tool as we have in years past to incentivize residents during our slower season.

Tim Lobner: Right now, I'll add that we don't have any concessions on our scatter-site product. We use that tool as we have in years past, to incentivize residents during our slower season. Right now, the only specials that we have going are on our build-to-rent communities, and that's pretty customary for developers and investors, during lease-up to achieve stabilization. So we're really happy with the supply and demand fundamentals as they're heading into peak season right now.

Speaker #3: Right now, the only specials that we have going are on our build-to-rent communities. And that's pretty customary for developers and investors. During lease-up to achieve stabilization.

Speaker #3: So we're really happy with the supply and demand fundamentals as they're heading into peak season right now.

Speaker #4: If your next question comes from the line of Eric Wolf with Citi, please go ahead.

Operator: Your next question comes from the line of Eric Wolfe with Citi. Please go ahead.

Eric Wolfe: Hey, thanks. Good morning. I think some drafts of the Institutional Investor Ban have been circulating through Congress. I was just curious if you could comment on sort of what you would like to not see in that bill, versus what you're advocating for, sort of how you hope the legislation ultimately looks?

Speaker #6: Hey, thanks. Good morning. I think some drafts of the institutional investor ban have been circulating through Congress. I was just curious if you could comment on sort of what you would like to not see in that bill versus what you're advocating for, sort of how you hope the legislation ultimately looks.

Dallas Tanner: ... Hi, Eric, this is Dallas. Thanks for your question. We're certainly all over it, as you'd expect. And I just, at a high level, say that we've been encouraged by the discussions with policymakers on both sides of the aisle through this process. Obviously, the EO, well, the tweet, I should say, and then the EO, was something that I don't think the industry really expected. That being said, we have a sensitivity and an appreciative nature of the focus being on this issue around affordability. I believe through the trade association, also the work that we've been doing, with the companies in the NRHC, I believe we've been able to highlight appropriately where SFR and more importantly, professionally operated single-family rental lives in the broader ecosystem.

Dallas Tanner: Hi, Eric, this is Dallas. Thanks for your question. We're certainly all over it, as you'd expect. And I just, at a high level, say that we've been encouraged by the discussions with policymakers on both sides of the aisle through this process. Obviously, the EO, well, the tweet, I should say, and then the EO, was something that I don't think the industry really expected.

Speaker #3: Hi, Eric. This is Dallas. Thanks for your question. We're certainly all over it, as you'd expect. And I just, at a high level, say that we've been encouraged by the discussions with policymakers on both sides of the aisle through this process.

Speaker #3: Obviously, the EO, well, the tweet, I should say, and then the EO was something that I think the industry really expected. That being said, we have a sensitivity and appreciative nature of the focus being on this issue around affordability.

Dallas Tanner: That being said, we have a sensitivity and an appreciative nature of the focus being on this issue around affordability. I believe through the trade association, also the work that we've been doing, with the companies in the NRHC, I believe we've been able to highlight appropriately where SFR and more importantly, professionally operated single-family rental lives in the broader ecosystem.

Speaker #3: I believe through the trade association, also the work that we've been doing, with the companies in the NRHC, I believe we've been able to highlight appropriately where SFR and, more importantly, professionally operated single-family rental lives in this in the broader ecosystem.

Dallas Tanner: That being said, I think it's a little too early to speculate on what we, you know, what we do or don't want to see. In some regards, I think the industry is hoping for clarity. I think we like the idea of having some clarity of what you're able to do versus maybe what you're not able to do. It certainly feels like BTR and the production of new product is something that feels pretty favorable based on the conversations we've been having. So we view that as a positive. We're excited about that and what it means for both the way we work with our current builder partners and also what we can do now with our own platform in ResiBuilt.

Speaker #3: That being said, I think it's a little too early to speculate on what we you know, what we do or don't want to see.

Speaker #3: In some regards, I think the industry is hoping for clarity. I think we like the idea of having some clarity of what you're able to do versus maybe what you're not able to do.

Speaker #3: It certainly feels like BTR and the production of new product is something that feels pretty favorable, based on the conversations we've been having. So we view that as a positive.

Dallas Tanner: It certainly feels like BTR and the production of new product is something that feels pretty favorable based on the conversations we've been having. So we view that as a positive. We're excited about that and what it means for both the way we work with our current builder partners and also what we can do now with our own platform in ResiBuilt.

Speaker #3: We're excited about that and what it means for both the way we work with our current builder partners and also what we can do now with our own platform and resi-built.

Dallas Tanner: During these conversations, the focus has certainly just been on affordability, path to homeownership, and to create sort of lanes for folks that wanna transition into homeownership over time. And as you guys are well aware, we've been hyper-focused on that latter point, really, for a couple of years now, and making sure that we have positive credit reporting. We've currently got 160,000 residents enrolled in positive credit reporting. We've seen credit scores go up by 50 basis points. So I think all these facts have also been very helpful as we've been talking with policymakers around how SFR can fit into the broader ecosystem. And, and I think, you know, the important part here is that we wanna meet customers where they are.

Speaker #3: During these conversations, the focus has certainly just been on affordability—Path to Home Ownership—and to create sort of lanes for folks that want to transition into home ownership over time.

Speaker #3: And as you guys are well aware, we've been hyper-focused on that latter point really for a couple of years now, and making sure that we have positive credit reporting.

Speaker #3: We have currently about 160,000 residents enrolled in positive credit reporting. We've seen credit scores go up by 50 basis points. So I think all these facts have also been very helpful as we've been talking with policymakers around how SFR can fit into the broader ecosystem and I think, you know, the important part here is that we want to meet customers where they are.

Dallas Tanner: We've currently got 160,000 residents enrolled in positive credit reporting. We've seen credit scores go up by 50 basis points. So I think all these facts have also been very helpful as we've been talking with policymakers around how SFR can fit into the broader ecosystem. And, and I think, you know, the important part here is that we wanna meet customers where they are.

Dallas Tanner: And there's certainly a number of customers, we see it in our business day in and day out, that transition from rental to homeownership. I think in the last quarter, it was around 16 or 17%. Traditionally, it's been between 20 and 25%. We view that as normal. But with the differential in costs being about $1,000 a month cheaper to rent than to own, not including the down payment burden, and then the other things that go into homeownership, we know we offer a pretty attractive value to customers, and they continue to tell us that, both in our surveys, and as we work for ways to refine and improve our processes. So I think that's all I can say from a legislative perspective. We're certainly engaged.

Speaker #3: And there's certainly a number of customers. We see it in our business day in and day out that transition from rental to home ownership.

Speaker #3: I think in the last quarter, it was around 16 or 17 percent. Traditionally, it's been between 20 and 25 percent. We do that as normal.

Speaker #3: But with the differential in costs being about $1,000 a month cheaper to rent than to own, not including the down payment burden and then the other things that go into homeownership, we know we offer a pretty attractive value to customers.

Dallas Tanner: But with the differential in costs being about $1,000 a month cheaper to rent than to own, not including the down payment burden, and then the other things that go into homeownership, we know we offer a pretty attractive value to customers, and they continue to tell us that, both in our surveys, and as we work for ways to refine and improve our processes. So I think that's all I can say from a legislative perspective. We're certainly engaged. We're having great discussions, and I feel like it's been candidly, pretty, pretty collaborative.

Speaker #3: And they continue to tell us that, both in our surveys and as we work for ways to refine and improve our processes. So I think that's all I can say from a legislative perspective.

Speaker #3: We're certainly engaged. We're having great discussions, and I feel like it's been, candidly, pretty collaborative.

Dallas Tanner: We're having great discussions, and I feel like it's been candidly, pretty, pretty collaborative.

Speaker #4: If your next question comes from the line of Austin Wehrschmidt with T Bank Capital Markets, please go ahead.

Operator: Your next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets. Please go ahead.

Austin Wurschmidt: Great. Thanks. Good morning, everyone. So appreciate kind of the decision to step in and buy your shares here and, you know, comments around being a net seller and using some of those proceeds to buy back shares. But I guess, Dallas, given your comments about, you know, being encouraged with what's happening on the regulatory front, Tim mentioned you're starting to see supply moderate. You know, what would it take for you to really ramp up the buyback, you know, even further, given that meaningful value that you referenced you see in shares today? Thanks.

Speaker #5: Great. Thanks, good morning, everyone. So appreciate kind of the decision to step in and buy your shares here and, you know, comments around being a net seller and using some of those proceeds to buy back shares.

Austin Wurschmidt: But I guess, Dallas, given your comments about, you know, being encouraged with what's happening on the regulatory front, Tim mentioned you're starting to see supply moderate. You know, what would it take for you to really ramp up the buyback, you know, even further, given that meaningful value that you referenced you see in shares today? Thanks.

Speaker #5: But I guess Dallas, given your comments about, you know, being encouraged with what's happening on the regulatory front, Tim mentioned you're starting to see supply moderate.

Speaker #5: You know, what would it take for you to really ramp up the buyback, you know, even further given that meaningful value that you referenced you see in shares today?

Speaker #5: Thanks.

Speaker #3: Thanks for the question, Austin. I want to echo what John said and am prepared to mark. I mean, we see real value there, in terms of where the shares are currently trading.

Dallas Tanner: Thanks for the question, Austin. I wanna echo what John said in his prepared remarks. I mean, we see real value there in terms of where the shares are currently trading. We are clear about that at NAREIT at the end of the year. Now, we certainly have limited windows where you can, you know, sort of operate. And then at the end of the day, and I think you guys know this about us, from a capital allocation perspective, we also wanna be moderate. We know that we have opportunities on the horizon, both with external growth and some of the opportunities that we'll look at over the coming year.

Speaker #3: We are clear about that at NAREIT. At the end of the year. Now, we certainly have limited windows where you can, you know, sort of operate.

Dallas Tanner: Then at the end of the day, and I think you guys know this about us, from a capital allocation perspective, we also wanna be moderate. We know that we have opportunities on the horizon, both with external growth and some of the opportunities that we'll look at over the coming year.

Speaker #3: And then at the end of the day, and I think you guys know this about us, from a capital allocation perspective, we also want to be moderate.

Speaker #3: We know that we have opportunities on the horizon, both with external growth and some of the opportunities that we'll look at over the coming year.

Speaker #3: But I think for us, it'll be about when the opportunities are available to us, as John said, with always thinking about where our current cost of capital is, and highest, best use on a risk-adjusted basis for economic returns that make sense for our shareholders.

Dallas Tanner: But I think for us, it'll be about when the opportunities are available to us, as John said, with always thinking about where our current cost of capital is and the highest, best use on a risk-adjusted basis for economic returns that make sense for our shareholders. So you can certainly argue that if the shares continue to trade in this range, that on a risk-adjusted basis, it can make sense to continue to be active there.

Speaker #3: So, you can certainly argue that if the shares continue to trade in this range, that on a risk-adjusted basis, it can make sense to continue to be active there.

Speaker #4: If your next question comes from the line of Steve Sakwa with Evercore ISI, please go ahead.

Operator: Your next question comes from the line of Steve Sakwa with Evercore ISI. Please go ahead.

Speaker #7: Yeah, thanks. Good morning. I was wondering if you could provide a little more commentary around your expense growth assumptions. I know that you guys did a very good job containing expenses and I think candidly beat your initial expense outlook for '25.

Steve Sakwa: Yeah, thanks. Good morning. I was wondering if you could provide a little more commentary around your expense growth assumptions. I know that you guys did a very good job containing expenses, and I think handily beat your initial expense outlook for 2025. I know you've put a few assumptions around taxes and insurance for 2026, but you know, maybe just speak to some of those numbers, and they seem a little bit elevated, but maybe there's some tough comps going on. So any clarity around expense growth would be helpful. Thanks.

Speaker #7: I know you’ve put a few assumptions around taxes and insurance for ’26, but, you know, maybe just speak to some of those numbers. They seem a little bit elevated, but maybe there are some tough comps going on.

Speaker #7: So any clarity around expense growth would be helpful. Thanks.

Speaker #5: Yeah, Steve, thanks. I think a couple of things going on there. You know, with property taxes, obviously the outcome in 2025 was pretty favorable relative to our guidance.

Jonathan Olsen: Yeah, Steve, thanks. I think a couple things going on there. You know, with property taxes, you know, obviously the outcome in 2025 was pretty favorable relative to our guidance. I think it's worth pointing out that, you know, we had a fairly sizable good guy in Texas last year, and absent that, you know, property tax growth would have been closer to the mid-fours. So the range we've articulated in our guidance, you know, I think is generally consistent year-over-year. With respect to insurance, a couple things going on there. You know, 2025 was a very favorable year for us. It creates a bit of a tougher comp. I think if you look at the property market, we think that that is going to be a very constructive renewal.

Speaker #5: I think it's worth pointing out that, you know, we had a fairly sizable good guy in Texas last year, an absent that, you know, property tax growth would have been closer to the mid-4s.

Speaker #5: So the range we've articulated in our guidance, you know, I think is generally consistent year over year. With respect to insurance, a couple of things going on there.

Jonathan Olsen: So the range we've articulated in our guidance, you know, I think is generally consistent year-over-year. With respect to insurance, a couple things going on there. You know, 2025 was a very favorable year for us. It creates a bit of a tougher comp. I think if you look at the property market, we think that that is going to be a very constructive renewal.

Speaker #5: You know, 2025 was a very favorable year for us. It creates a bit of a tougher comp. I think if you look at the property market, we think that that is going to be a very constructive renewal.

Jonathan Olsen: It's in the general liability, excess casualty, and auto market that has become materially harder and where we think we'll see some outsized increases year over year. So when you put it together, you know, that's the driver around the insurance expense growth. Our policy year runs from 1 March to 1 March, so we'll be buttoning that up in the next week and a half, and we'll have more information that we can share. You know, certainly looking at all the levers we can pull to try to drive a better outcome, but, you know, we're not gonna change the way our program is constructed. We wanna make sure that we are well insured, and, you know, the insurance market has sort of ebbs and flows, similar to other markets.

Speaker #5: It's in the general liability excess casualty and auto market that has become materially harder and where we think we'll see some outsized increases year over year.

Speaker #5: So when you put it together, you know, that's the driver around the insurance expense growth. Now, our policy year runs from March 1st to March 1st, so we'll be buttoning that up in the next week and a half and we'll have more information that we can share.

Jonathan Olsen: You know, certainly looking at all the levers we can pull to try to drive a better outcome, but, you know, we're not gonna change the way our program is constructed. We wanna make sure that we are well insured, and, you know, the insurance market has sort of ebbs and flows, similar to other markets.

Speaker #5: You know, certainly looking at all the levers we can fold to try to drive a better outcome, but, you know, we're not going to change the way our program is constructed.

Speaker #5: We want to make sure that we are well insured. And, you know, the insurance market has sort of ebbs and flows similar to other markets.

Jonathan Olsen: If you look at, you know, what that implies for overall controllable expense growth or all other expense growth, I guess I should say, you know, it's really in the range of 1 to 2%. So we think our cost controls continue to be effective. We continue to be laser focused on trying to make sure that we are being as efficient as we can be. I think the other thing I would call out with respect to expenses is something that we included in our earnings bridge. I think several of you noted it, but I would just point out that we have incorporated in our bridge an estimate of $0.02 per share related to advocacy and other costs. You know, want to be clear that that is an estimate.

Speaker #5: If you look at, you know, what that implies for overall controllable expense growth, or all other expense growth, I guess I should say, you know, it's really in the range of 1 to 2 percent.

Speaker #5: So we think our cost controls continue to be effective. We continue to be laser-focused on trying to make sure that we are being as efficient as we can be.

Jonathan Olsen: I think the other thing I would call out with respect to expenses is something that we included in our earnings bridge. I think several of you noted it, but I would just point out that we have incorporated in our bridge an estimate of $0.02 per share related to advocacy and other costs. You know, want to be clear that that is an estimate.

Speaker #5: I think the other thing I would call out with respect to expenses is something that we included in our earnings bridge I think several of you noted it, but I would just point out that we have incorporated in our bridge an estimate of $0.02 per share related to advocacy and other costs.

Speaker #5: You know, I want to be clear that that is an estimate. You know, we've incurred some limited costs to date, and the timing and magnitude of any additional costs we incur is a bit of an open question.

Jonathan Olsen: You know, we've incurred some limited costs to date, and the timing and magnitude of any additional costs we incur is a bit of an open question. But we wanted to include something there in the bridge, just to be transparent about the likelihood that there will be costs associated with navigating the current regulatory backdrop.

Speaker #5: But we wanted to include something there in the bridge, just to be transparent about the likelihood that there will be costs associated with navigating the current regulatory backdrop.

Speaker #4: If your next question comes from the line of Brad Hepburn with RBC, please go ahead.

Operator: Your next question comes from the line of Brad Heffern with RBC. Please go ahead.

Speaker #8: Yeah, hey everybody, thanks. On the repurchase, I was wondering if you could talk about what the rough maximum amount is that you can accomplish in any given year without running into tax issues or needing to issue a special.

Brad Heffern: Yeah. Hey, everybody, thanks. On the repurchase, I was wondering if you could talk about what the rough maximum amount is that you can accomplish in any given year without running into tax issues or needing to re-issue a special? I know it varies based on what exactly you're selling, what the gains on sale are, et cetera, but I'm kind of wondering if the guidance assumes a number that's sort of close to what the annual maximum might be, or if there's upside to that.

Speaker #8: I know it varies based on what exactly you're selling, what the gains on sale are, et cetera, but I'm kind of wondering if the guidance assumes a number that's sort of close to what the annual maximum might be, or if there's upside to that.

Jonathan Olsen: Thanks. I would just point out that, you know, we're not gonna get into any specifics about, you know, the quantum of share repurchase embedded in guidance. But I would say that, as Dallas noted, and, and as I think I touched on in my prepared remarks, you know, when we see a material disconnect between where our shares are trading and what that implies, as far as the value of our portfolio, and what we view that the actual value of our assets to be, you know, we have to evaluate that as an opportunity for capital deployment, right? And if we look at the relative, risk-adjusted returns of the various alternatives available to us, it is hard to conclude, that share repurchases aren't a very, very compelling use of funds.

Speaker #5: Thanks. I would just point out that, you know, we're not going to get into any specifics about, you know, the quantum of share repurchase embedded in guidance, but I would say that as Dallas noted and as I think I touched on in my prepared remarks, you know, when we see a material disconnect between where our shares are trading and what that implies as far as the value of our portfolio, and what we've viewed that the actual value of our assets to be, you know, we have to evaluate that as an opportunity for capital deployment, right?

Jonathan Olsen: You know, we have to evaluate that as an opportunity for capital deployment, right? And if we look at the relative, risk-adjusted returns of the various alternatives available to us, it is hard to conclude, that share repurchases aren't a very, very compelling use of funds.

Speaker #5: And if we look at the relative risk-adjusted returns of the various alternatives available to us, it is hard to conclude that share repurchases aren't a very, very compelling use of funds.

Jonathan Olsen: So I think, you know, what we've outlined in our guidance in terms of capital allocation activity sort of suggests that there will be excess disposition proceeds that, you know, should the shares continue to trade at a level that is meaningfully dislocated from the value of our assets, suggest that we'll be active in the market buying back shares.

Speaker #5: So I think, you know, what we've outlined in our guidance in terms of capital allocation activity sort of suggests that there will be excess disposition proceeds that, you know, should the shares continue to trade at a level that is meaningfully dislocated from the value of our assets, suggests that we'll be active in the market buying back shares.

Speaker #4: If your next question comes from the line of Hendel St. Just with Mizuho. Please go ahead.

Operator: Your next question comes from the line of Haendel St. Juste with Mizuho. Please go ahead.

Haendel St. Juste: Hey, guys. Thanks for taking the question. I wanted to follow up on Yana's question on blend. Appreciate the color, John, but I'm still having trouble, I guess, getting to the mid 2% that you, that you mentioned. So maybe some more color on what you're implicitly expecting for turnover, renewal, new lease rates, and then while you're at it, maybe some color on bad debt and ancillary as well. Thank you.

Speaker #7: Hey guys, thanks for taking the question. I wanted to follow up on Yana's question on blends. I appreciate the color, John, but I'm still having trouble, I guess, getting to the mid-2 percent that you mentioned.

Speaker #7: So maybe some more color on what your implicitly expecting for turnover renewal, new lease rates. And then while you're at it, maybe some color on bad debt and ancillary as well.

Speaker #7: Thank you.

Jonathan Olsen: Sure. Thanks, Haendel. We are assuming turnover at the midpoint, that is slightly higher than last year. You know, we expect our renewal rate will remain healthy, given the favorable value proposition that we talked about in our prepared remarks. But I think the guide also acknowledges that there is a larger volume of rental product competing on the basis of price, and we anticipate that will lead to slightly higher turnover year-over-year. As far as days to re-resident, I would note again, the supply pressures we're facing in certain of our markets, you know, are likely to have a flow-through occupancy impact, primarily through longer days on market. You know, we have done a very good job, I think, and tip of the cap to Tim's team, in keeping days and turn pretty consistent.

Speaker #5: Sure, thanks Handel. We are assuming turnover at the midpoint that is slightly higher than last year. You know, we expect our renewal rate will remain healthy.

Speaker #5: Given the favorable value proposition that we talked about in our prepared remarks, but I think the guide also acknowledges that there is a larger volume of rental product competing on the basis of price.

Speaker #5: And we anticipate that will lead to slightly higher turnover year over year. As far as days to re-resident, I would note again the supply pressures we're facing in certain of our markets, you know, are likely to have a flow-through occupancy impact, primarily through longer days on market.

Jonathan Olsen: As far as days to re-resident, I would note again, the supply pressures we're facing in certain of our markets, you know, are likely to have a flow-through occupancy impact, primarily through longer days on market. You know, we have done a very good job, I think, and tip of the cap to Tim's team, in keeping days and turn pretty consistent.

Speaker #5: You know, we have done a very good job, I think, and tip of the cap to Tim's team in keeping days in turn pretty consistent.

Jonathan Olsen: But the days in market number has certainly elongated. I think we did about 48 days to re-resident in 2025, and my expectation is that in 2026, it'll take us a few days longer, on average, over the course of the year, to get new residents into homes and getting them cash flowing. You know, with respect to sort of the components of the revenue growth guide, I would just point out that I think, the earn-in from 2025 will represent about 105 basis points. Blended rent growth this year is about another 105 basis points, and then the increase in other income contributes about 20 basis points.

Speaker #5: But the days on market number has certainly elongated. I think we did about 48 days to re-resident, and 25 in my expectation is that in 2026 it'll take us a few days longer on average over the course of the year.

Speaker #5: To get new residents into homes and getting them cash flowing. You know, with respect to sort of the components of the revenue growth guide, I would just point out that I think the earn-in from 25 will represent about 105 basis points.

Jonathan Olsen: You know, with respect to sort of the components of the revenue growth guide, I would just point out that I think, the earn-in from 2025 will represent about 105 basis points. Blended rent growth this year is about another 105 basis points, and then the increase in other income contributes about 20 basis points. So then if you net against that, about a 40 basis point deduct for lower occupancy year-over-year, that's how you get to the 190 basis points at the midpoint.

Speaker #5: Blended rent growth this year is about another 105 basis points, and then the increase in other income contributes about 20 basis points. So, if you net against that about a 40 basis point deduct for lower occupancy year over year, that's how you get to the 190 basis points at the midpoint.

Jonathan Olsen: And so then if you net against that, about a 40 basis point deduct for lower occupancy year-over-year, that's how you get to the 190 basis points at the midpoint.

Speaker #4: If your next question comes from the line of Juan Cenebria with BMO Capital Markets, please go ahead. Juan, your line is open.

Operator: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Please go ahead. Juan, your line is open.

[Analyst] (BMO Capital Markets): Hi, this is Emily. Hi, this is Emily on behalf of Juan. Thank you for taking my question. I wanted to ask you if you could talk about what you've seen so far in January across the new lease, renewal, and blended rates, as well as occupancy?

Speaker #9: Hi, this is Emily. Hi, this is Emily on behalf of Juan. Thank you for taking my question. I wanted to ask you if you could talk about what you've seen so far in January across new lease renewal and blended rates as well as occupancy.

Speaker #5: Yeah, this is Tim. It's a great question. Yeah, we've seen what we would expect to see in early February, heading into the new year.

Tim Lobner: Yeah, this is Tim. That's a great question. Yeah, we've seen what we would expect to see in early February. Heading into the new year, typically, you start to see a higher demand, higher lead volume across the assets, and so we're seeing that materialize in a stronger new lease rent growth.

Speaker #5: Typically you start to see a higher demand higher lead volume across the assets. And so we're seeing that materialize in a stronger new lease rent growth.

Dallas Tanner: ...On the renewal side, look, the renewal side of the business is a very consistent part of our business. It represents 75% of the book. The renewal rates continue to remain very firm, and, you know, I think residents are generally very satisfied with what they're experiencing. We do expect to see, as I mentioned earlier on the call, we do expect to see our spreads, you know, start to narrow as we get deeper into spring, and we expect to see that continue until mid-summer. So you can expect to see that blend continue to pick up in these next couple months.

Tim Lobner: On the renewal side, look, the renewal side of the business is a very consistent part of our business. It represents 75% of the book. The renewal rates continue to remain very firm, and, you know, I think residents are generally very satisfied with what they're experiencing.

Speaker #5: On the renewal side, look, the renewal side of the business is a very consistent part of our business. It represents 75 percent of the book.

Speaker #5: The renewal rates continue to remain very firm and, you know, I think residents are generally very satisfied with what they're experiencing. We do expect to see, as I mentioned earlier on the call, we do expect to see our spreads, you know, start to narrow as we get deeper into spring.

Tim Lobner: We do expect to see, as I mentioned earlier on the call, we do expect to see our spreads, you know, start to narrow as we get deeper into spring, and we expect to see that continue until mid-summer. So you can expect to see that blend continue to pick up in these next couple months.

Speaker #5: And we expect to see that continue until mid-summer. So you can expect to see that blend continue to pick up in these next couple months.

Speaker #4: If your next question comes from the line of John Poloski with Green Street, please go ahead.

Operator: Your next question comes from the line of John Pawlowski with Green Street. Please go ahead.

John Pawlowski: Thanks. John, a follow-up question on property taxes. Just given a lot of markets are seeing flat to declining home prices now, outside of the Texas kind of tough comps associated with Texas, are you seeing signs where municipalities are assessing property taxes more aggressively on investor-owned homes versus owner-occupied? Because I still think the 4 to 5% guide strikes us as really high, given home prices are declining, not really rising that fast.

Speaker #7: Thanks. John, a follow-up question on property taxes. Just given a lot of markets are seeing flat to declining home prices now. Outside of the kind of tough comps associated with Texas, are you seeing signs where municipalities are assessing property taxes more aggressively on investor-owned homes versus owner-occupied?

Speaker #7: Because I still think the 4% to 5% guide strikes us as really high, given home prices are declining—not really rising that fast.

Speaker #5: Yeah, John, it's the right question. Thankfully we are not seeing a differential treatment of investor-owned homes versus owner-occupant-owned homes. You know, I think any approach to, you know, quote-unquote "property tax relief" that benefits owner-occupants at the expense of SFR operators, you know, effectively transfers costs from the families that own their homes to families that choose to rent.

Jonathan Olsen: Yeah, John, it, it's the right question. Thankfully, we are not seeing, you know, a differential treatment of investor-owned homes versus owner-occupant-owned homes. You know, I think any approach to, you know, quote, unquote, "property tax relief" that benefits owner occupants at the expense of SFR operators, you know, effectively transfers costs from the families that own their homes to families that choose to rent. You know, our hope is that the folks making those decisions recognize that renters are voters, too. I think with property tax overall, John, you know, we just wanna be cautious. I think as we've talked about at length, you know, Florida and Georgia are two of our three biggest markets.

Jonathan Olsen: You know, our hope is that the folks making those decisions recognize that renters are voters, too. I think with property tax overall, John, you know, we just wanna be cautious. I think as we've talked about at length, you know, Florida and Georgia are two of our three biggest markets.

Speaker #5: You know, our hope is that the folks making those decisions recognize that renters are voters too. I think with property tax overall, John, you know, we just want to be cautious.

Speaker #5: I think as we've talked about at length, you know, Florida and Georgia are two of our three biggest markets. And we have seen a continuing catch-up in terms of assessed values relative to what we view true market value to be.

Jonathan Olsen: And we have seen a continuing catch up in terms of assessed values relative to what we view true market value to be. You know, just as a reminder, from 2022 to 2025 in Florida, we saw over 22% home price appreciation, and in Georgia, over that same period, it's over 23%. And so, you know, the ability of assessed values to catch up to that market value when it has expanded as rapidly as it has is somewhat limited. You know, in Florida in particular, a portion of property tax bills are capped such that assessed values on a percentage of the total tax bill can only go up 10%. So structurally, it sets up a multiyear catchup.

Jonathan Olsen: We have seen a continuing catch up in terms of assessed values relative to what we view true market value to be. You know, just as a reminder, from 2022 to 2025 in Florida, we saw over 22% home price appreciation, and in Georgia, over that same period, it's over 23%.

Speaker #5: You know, just as a reminder, from '22 to '25 in Florida we saw over 22 percent home price appreciation and in Georgia over that same period it's over 23 percent.

Jonathan Olsen: So, you know, the ability of assessed values to catch up to that market value when it has expanded as rapidly as it has is somewhat limited. You know, in Florida in particular, a portion of property tax bills are capped such that assessed values on a percentage of the total tax bill can only go up 10%. So structurally, it sets up a multiyear catchup.

Speaker #5: And so, you know, the ability of assessed values to catch up to that market value, when it has expanded as rapidly as it has, is somewhat limited.

Speaker #5: You know, in Florida in particular a portion of property tax bills are capped such that assessed values on a percentage of the total tax bill can only go up 10 percent.

Speaker #5: So structurally it sets up a multi-year catch-up. And so I think as I take it all together and we look at property taxes, you know, certainly we're hopeful that we will do better than that.

Jonathan Olsen: And so I think as I take it all together and we look at property taxes, you know, certainly we're hopeful that we will do better than that. I think, as you know, we have, we've had some nasty surprises if you go back enough years, and that's something that we wanna make sure we avoid by just being thoughtful about, you know, what is likely to happen at that line item.

Jonathan Olsen: So I think as I take it all together and we look at property taxes, you know, certainly we're hopeful that we will do better than that. I think, as you know, we have, we've had some nasty surprises if you go back enough years, and that's something that we wanna make sure we avoid by just being thoughtful about, you know, what is likely to happen at that line item.

Speaker #5: I think, as you know, we have had some nasty surprises if you go back enough years. And that's something that we want to make sure we avoid by just being thoughtful about, you know, what is likely to happen at that line item.

Speaker #4: Your next question comes from the line of Jamie Feldman with Wells Fargo. Please go ahead.

Operator: Your next question comes from the line of Jamie Feldman with Wells Fargo. Please go ahead.

Jamie Feldman: Great. Thanks for taking the call. You know, I guess first, thinking about development, with the ResiBuilt platform, you know, do you think you'll need to buy more platforms if you're gonna grow your development platform across the country? Or do you think ResiBuilt's, you know, you'll stay within the ResiBuilt platform to expand into other markets? And maybe a little bit more color on where you think you can be building going forward.

Speaker #7: Great, thanks for taking the call. You know, I guess first, thinking about development with the resi-build platform, do you think you'll need to buy more platforms if you're going to grow your development platform across the country?

Speaker #7: Or do you think resi-builds, you know, you'll stay within the resi-build platform to expand into other markets? And maybe a little bit more color on where you think you can be building going forward?

Dallas Tanner: Jamie, thanks for the question. This is Dallas, and I'll also let Scott add anything he wants to add to this. I think at a high level, we feel really comfortable about the capability we just brought in-house. Jay is a seasoned operator in the space. We've known him for over a decade. We've been impressed with the work they've done. They've built out a really remarkable platform in terms of both capability and scale. Scott talked about the 20-plus existing projects they have ongoing. Which, by the way, we didn't underwrite this initially, but has led to a lot of great synergies with our lending efforts in terms of opportunity sets and things we're getting an opportunity to look at on that perspective.

Speaker #5: Jamie, thanks for the question. This is Dallas. And I'll also let Scott add anything he wants to add to this. I think at a high level, we feel very comfortable about the capability we just brought in-house.

Speaker #5: Jay is a seasoned operator in the space. We've known him for over a decade. We've been impressed with the work they've done. They've built out a really remarkable platform in terms of both capability and scale.

Dallas Tanner: They've built out a really remarkable platform in terms of both capability and scale. Scott talked about the 20-plus existing projects they have ongoing. Which, by the way, we didn't underwrite this initially, but has led to a lot of great synergies with our lending efforts in terms of opportunity sets and things we're getting an opportunity to look at on that perspective.

Speaker #5: Scott talked about the 20-plus existing projects they have ongoing. Which, by the way, we didn't underwrite this initially. But it has led to a lot of great synergies with our lending efforts.

Speaker #5: In terms of opportunity sets and things we're getting an opportunity to look at on that perspective. I don't know that you necessarily have to go out and acquire other platforms to try and grow your development business.

Dallas Tanner: I don't know that you necessarily have to go out and acquire other platforms to try and grow your development business. I think we've got the capability in-house. It's just a question around which markets do we want to be in and why. And we have a ton of experience prior to the ResiBuilt acquisition, of understanding sort of what our costs are in particular parts of the country as we build with partners, and the like. And so I think for us, we feel pretty confident that we don't really need to do much outside of manage the mature organization we've just brought on, and find ways to sort of blend and extend in the right parts of the country over time and over distance.

Speaker #5: I think we've got the capability in-house. It's just a question around which markets do we want to be in and why. And we have a ton of experience prior to the resi-build acquisition of understanding sort of what our costs are in particular parts of the country as we build with partners.

Speaker #5: And the like. And so I think for us we feel pretty confident that we don't really need to do much outside of manage the mature organization we just brought on.

Dallas Tanner: So I think for us, we feel pretty confident that we don't really need to do much outside of manage the mature organization we've just brought on, and find ways to sort of blend and extend in the right parts of the country over time and over distance.

Speaker #5: And find ways to sort of blend and extend in the right parts of the country over time, and over distance. The nice thing about this is, this is really a creative.

Dallas Tanner: The nice thing about this is, this is really accretive, in terms of how we think about it. They have a, you know, a cash flow positive business that does great work in the marketplace with multiple parties. And we can start to look at opportunities, as Scott mentioned in his earlier remarks, that are already sort of in front of us, and we can also, you know, sit on the sidelines if we want to, until we decide, that a particular opportunity makes sense. Scott, anything you want to add to that?

Speaker #5: In terms of how we think about it, they have a, you know, a cash flow positive business that does great work in the marketplace with multiple parties.

Speaker #5: And we can start to look at opportunities as Scott mentioned in his earlier remarks that are already sort of in front of us. And we can also sit on the sidelines if we want to until we decide that a particular opportunity makes sense.

Speaker #5: Scott, anything you want to add to that?

Speaker #7: No, thanks, Dallas. Thanks, Jamie. This is Scott. I think at our Investor Day in November, we shared our long-term vision to create value through, you know, our BTR growth strategy, the combined construction lending and development.

Jonathan Olsen: No, thanks, Dallas. Thanks, Jamie. This is Scott. I think at our Investor Day in November, we shared our long-term vision to create value through, you know, our BTR growth strategy that combines construction, lending, and development. And, you know, our announcement of buying the ResiBuilt platform was months of thoughtful planning to advance that vision. The acquisition of Resi is a great step forward for us. They're a best-in-class developer that enhances our execution capabilities, expands our capacity to address the nation's most pressing challenges of housing affordability.

Scott Eisen: No, thanks, Dallas. Thanks, Jamie. This is Scott. I think at our Investor Day in November, we shared our long-term vision to create value through, you know, our BTR growth strategy that combines construction, lending, and development. And, you know, our announcement of buying the ResiBuilt platform was months of thoughtful planning to advance that vision.

Speaker #7: And you know, our announcement of buying the ResiBuild platform was months of thoughtful planning to advance that vision. The acquisition of Resi is a great step forward for us.

Scott Eisen: The acquisition of Resi is a great step forward for us. They're a best-in-class developer that enhances our execution capabilities, expands our capacity to address the nation's most pressing challenges of housing affordability.

Speaker #7: They're a best-in-class developer that enhances our execution capabilities. Expands our capacity to address the nation's most pressing challenges on housing affordability. You know, we're focused on adding supply in desirable markets and creating communities that families are proud to call home.

Scott Eisen: ... You know, we're focused on adding supply in desirable markets and creating communities that families are proud to call home. They're currently focused in the Carolinas, Florida, and Georgia, and we're going to continue to leverage their capabilities and boots on the ground in those markets. And that's really where our efforts are going to be focused for, for the foreseeable future.

Scott Eisen: You know, we're focused on adding supply in desirable markets and creating communities that families are proud to call home. They're currently focused in the Carolinas, Florida, and Georgia, and we're going to continue to leverage their capabilities and boots on the ground in those markets. And that's really where our efforts are going to be focused for, for the foreseeable future.

Speaker #7: They're currently focused in the Carolinas and Florida and Georgia. And we're going to continue to leverage their capabilities and boots on the ground in those markets.

Speaker #7: And that's really where our efforts are going to be focused for the foreseeable future.

Speaker #4: If f your next question comes from the line of Michael Goldsmith. With UBS. Please go ahead.

Operator: Your next question comes from the line of Michael Goldsmith with UBS. Please go ahead.

[Analyst] (UBS): Hi, this is Amy. I'm with Michael. The homebuilder partnership pipeline has been moderating, and cap rates on acquisitions have also been slowly ticking down. So I was wondering, how have your relationships with the homebuilders evolved, and what factors are leading to the slower pipeline and potentially, maybe a little bit lower growth from this avenue?

Speaker #8: Hi, this is Amy. I'm with Michael. The homebuilder partnership pipeline has been moderating, and cap rates on acquisitions have also been slowly ticking down.

Speaker #8: So I was wondering how have your relationships with the homebuilders evolved? And what factors are leading to the slower pipeline and potentially maybe a little bit lower growth in this avenue?

Scott Eisen: Thanks. Great question. You know, as far as the homebuilder dialogue continues very strong, right? We have great relationships with both the national builders and the regional builders. But given our cost of capital, we have been less aggressive in terms of, you know, committing to future transactions with the builders, mainly as a signal because of our cost of capital. I will tell you, we continue to receive substantial opportunities, in particular, the end-of-month take from the builders. You know, for the first two months of this year, we've received a lot of deal flow from them. So there's still opportunities out there, but we're trying to be a little less aggressive and obviously, you know, listening to the signal in terms of our cost of capital and the balancing act between acquisitions and share repurchases.

Speaker #7: Thanks. Great question. You know, as far as the homebuilder dialogue, it continues to be very strong, right? We have great relationships with both the national builders and the regional builders.

Speaker #7: But given our cost of capital, we have been less aggressive in terms of, you know, committing to future transactions with the builders—mainly as a signal because of our cost of capital.

Speaker #7: I will tell you, we continue to receive substantial opportunities, in particular the end-of-month tape from the builders. You know, for the first two months of this year, we've received a lot of deal flow from them.

Scott Eisen: I will tell you, we continue to receive substantial opportunities, in particular, the end-of-month take from the builders. You know, for the first two months of this year, we've received a lot of deal flow from them. So there's still opportunities out there, but we're trying to be a little less aggressive and obviously, you know, listening to the signal in terms of our cost of capital and the balancing act between acquisitions and share repurchases.

Speaker #7: So there's still opportunities out there. But we're trying to be a little less aggressive and obviously, you know, listening to the signal in terms of our cost of capital and the balancing act between acquisitions and share repurchases.

Scott Eisen: And so I think, you know, but that being said, I think our relationship continues to be strong. We obviously purchased more than 2,000 homes last year from the homebuilders. We continue to have a daily dialogue. We're very selective. We are looking at opportunities for our joint venture partners. But again, given our cost of capital right now, I think we've just been less aggressive in terms of, you know, acquiring, from that pipeline.

Speaker #7: And so I think, you know, but that being said, I think our relationship continues to be strong. We obviously purchase more than 2,000 homes last year from the homebuilders.

Speaker #7: We continue to have a daily dialogue. We're very selective. We are looking at opportunities for our joint venture partners. But again, given our cost of capital right now, I think we've just been less aggressive in terms of, you know, acquiring from that pipeline.

Speaker #4: If your next question comes from the line of Jason Wayne with Barclays, please go ahead.

Operator: Your next question comes from the line of Jason Wayne with Barclays. Please go ahead.

Jason Sabshon: Hi, good morning. The release mentioned that ResiBuilt could serve as an in-house development contractor. Can you just give some more color around how their team will assist in the process as you're growing out the build-to-rent platform? And then just the longer-term growth profile of the ResiBuilt fee-based business, specifically.

Jason Wang: Hi, good morning. The release mentioned that ResiBuilt could serve as an in-house development contractor. Can you just give some more color around how their team will assist in the process as you're growing out the build-to-rent platform? And then just the longer-term growth profile of the ResiBuilt fee-based business, specifically.

Speaker #9: Hi, good morning. The release mentioned that resi-build could serve as an in-house development contractor. Can you just give some more color around how their team will assist in the process as you're growing out the build-to-rent platform?

Speaker #9: And then just the longer-term growth profile of the resi-build fee-based business specifically?

Speaker #7: Sure. This is Scott. Great question. Look, this platform, the resi-build, we've known these guys for a long time. They commenced operations six or seven years ago in terms of building up their platform.

Scott Eisen: Sure. This is Scott. Great question. Look, this platform. But we've known these guys for a long time. They commenced operations six or seven years ago in terms of building up their platform. And they're essentially a general contractor that has the capabilities to source land and do construction management oversight of projects. They have a business that, you know, historically, had built for one particular institutional partner, where they acted as a GP. But they also have acted as a fee builder on behalf of other third parties, where they've done general contracting work and received payment for performing services on behalf of other equity investors and developers. We will continue to have them, you know, work in that business and generate revenue by working with third parties.

Speaker #7: And they're essentially a general contractor that has the capabilities to source land and do construction management oversight of projects. They have a business that, you know, historically had built for one particular institutional partner where they acted as a GP.

Scott Eisen: They have a business that, you know, historically, had built for one particular institutional partner, where they acted as a GP. But they also have acted as a fee builder on behalf of other third parties, where they've done general contracting work and received payment for performing services on behalf of other equity investors and developers. We will continue to have them, you know, work in that business and generate revenue by working with third parties.

Speaker #7: But they also have acted as a fee builder on behalf of other third parties where they've done general contracting work and received payment for performing services on behalf of other equity investors and developers.

Speaker #7: We will continue to have them work in that business and generate revenue by working with third parties. And, over time, they're going to explore opportunities to also perform work both for our joint venture partners and eventually for ourselves, when our cost of capital improves.

Scott Eisen: And over time, they're going to explore opportunities to also perform work, both for our joint venture partners, and eventually for ourselves, when our cost of capital improves. And so I think that's. They're a full service, you know, GC developer, and they're going to continue to do what they've been doing.

Scott Eisen: Over time, they're going to explore opportunities to also perform work, both for our joint venture partners, and eventually for ourselves, when our cost of capital improves. And so I think that's. They're a full service, you know, GC developer, and they're going to continue to do what they've been doing.

Speaker #7: And so I think that they're a full-service GC developer and they're going to continue to do what they've been doing.

Speaker #4: If your next question comes from the line of Linda Tsai with Jefferies. Please go ahead.

Operator: Your next question comes from the line of Linda Tsai with Jefferies. Please go ahead.

Linda Tsai: Hi, thanks for taking my question. Just on ResiBuilt delivering 1,000 homes per year, and I know you're going to grow that more over time, but how long would it take to, say, double it, doubling it to over-- to maybe, like, 2,000 homes per year?

Speaker #8: Hi, thanks for taking my question. Just on resi-build delivering 1,000 homes per year, and I know you're going to grow that more over time, but how long would it take to say doubling it to maybe like 2,000 homes per year?

Scott Eisen: I think it's too soon, really, for us to be speculating on that. These guys have a platform and boots on the ground in place that gives them the ability to perform at least 1,000 home starts a year on behalf of their joint venture partners and customers. And over time, we'll kind of see where the business goes. But I think it's just too, you know, we closed on this acquisition five weeks ago. We're still working on integration of them into the platform. I think it's too soon for us to be speculating on things like that.

Speaker #7: I think it's too soon really for us to be speculating on that. These guys have a platform and boots on the ground in place that gives them the ability to perform at least 1,000 homestarts a year on behalf of their joint venture partners and customers.

Speaker #7: And over time, we'll kind of see where the business goes. But I think it's just too—you know, we closed on this acquisition five weeks ago.

Speaker #7: We're still working on integration of them into the platform. I think it's too soon for us to be speculating on things like that.

Speaker #4: If your next question comes from the line of Jade Romani. With KBW. Please go ahead.

Operator: Your next question comes from the line of Jade Ramani with KBW. Please go ahead.

[Analyst] (KBW): Hi, this is Jason. I'm for Jade. Thanks for taking my questions. So homebuilders are offering rates below 4% in markets such as Phoenix. Can you comment on the supply-demand balance in key Sun Belt markets and whether you're seeing an increase in move-outs to buy? Thank you.

Speaker #10: Hi, this is Jason. I'm for Jade. Thanks for taking my questions. So, homebuilders are offering rates below 4%, and markets such as Phoenix—can you comment on the supply-demand balance in Keystone Belt markets, and whether you're seeing an increase in move-outs to buy?

Speaker #10: Thank you.

Dallas Tanner: Jason, thanks for the question. This is Dallas. As I mentioned earlier, we're, we're only seeing about somewhere between 16% and 17% of our move-outs say that the reason they're doing so is because of homeownership opportunity. Now, that being said, and we're not mortgage experts, we clearly follow it, there's plenty of supply on the market for sale today. There certainly feels like there's a bid-ask spread between where homes are selling, where a home can be financed at. And you're certainly right in highlighting that builders have had an opportunity to buy down rate, which has, which has helped, candidly, probably keep home prices somewhat stable over the last couple of years. That being said, on a seasonally adjusted rate, we're still seeing somewhere, I think, just less than 4 million total transactions in a given year. That's really low.

Speaker #7: Jason, thanks for the question. This is Dallas. As I mentioned earlier, we're only seeing about somewhere between 16 and 17% of our move-outs say that the reason they're doing so is because of homeownership opportunity.

Speaker #7: Now that being said, and we're not mortgage experts, we clearly follow it, there's plenty of supply on the market for sale. Today there certainly feels like there's a bid-ask spread between where homes are selling, where a home can be financed at, and you're certainly right in highlighting that builders have had an opportunity to buy down rate, which is helped candidly probably keep home prices somewhat stable over the last couple of years.

Dallas Tanner: There certainly feels like there's a bid-ask spread between where homes are selling, where a home can be financed at and you're certainly right in highlighting that builders have had an opportunity to buy down rate, which has, which has helped, candidly, probably keep home prices somewhat stable over the last couple of years.

Dallas Tanner: That being said, on a seasonally adjusted rate, we're still seeing somewhere, I think, just less than 4 million total transactions in a given year. That's really low. Like, most economists would tell you that we should probably see somewhere between 5 and 5.5 million transactions. The amount of inventory in the MLS is almost 2x this year of what it was last year. So all of these fundamentals sort of suggest a couple of things to us as we look at the macros.

Speaker #7: That being said, on a seasonally adjusted rate, we're still seeing somewhere I think just less than 4 million total transactions in a given year.

Speaker #7: That's really low. Like, most economists would tell you that we should probably see somewhere between 5 and 5.5 million transactions. The amount of inventory in the MLS is almost 2x this year of what it was last year.

Dallas Tanner: Like, most economists would tell you that we should probably see somewhere between 5 and 5.5 million transactions. The amount of inventory in the MLS is almost 2x this year of what it was last year. So all of these fundamentals sort of suggest a couple of things to us as we look at the macros. One, there is just a cost to ownership that is pretty egregious at the moment, when you consider all things being loaded in. We take on mortgage-... quite a bit, but I think we need to be honest about property tax and insurance. John just talked about it. You know, property tax has been egregious in most states over the last 4 or 5 years, as it's caught up with the inflationary pressures put on housing prices.

Speaker #7: So, all of these fundamentals sort of suggest a couple of things to us as we look at the macros. One, there is just a cost to ownership that is pretty egregious at the moment.

Dallas Tanner: One, there is just a cost to ownership that is pretty egregious at the moment, when you consider all things being loaded in. We take on mortgage-... quite a bit, but I think we need to be honest about property tax and insurance. John just talked about it. You know, property tax has been egregious in most states over the last 4 or 5 years, as it's caught up with the inflationary pressures put on housing prices.

Speaker #7: When you consider all things being loaded in, we pick on mortgage quite a bit, but I think we need to be honest about property tax and insurance.

Speaker #7: John just talked about it. You know, property tax has been egregious in most states over the last four or five years, as it's caught up with the inflationary pressures put on housing prices.

Speaker #7: And then on the insurance side of the equation, it's been equally as tough, I think, as people think about that fully loaded cost. So that probably has something to do with that.

Dallas Tanner: And then on the insurance side of the equation, it's been equally as tough, I think, as people think about that fully loaded cost. So that probably has something to do with that. And then you, you know, the multiplier here is, of course, at what price can you finance this? And so you're right in highlighting that the builders have an advantage in terms of how they're buying down rate. But it feels like with, you know, the 30-year being around 6 or low 6s, it's got some room to go, probably to pique enough curiosity. But let's see how the spring and summer play out.

Dallas Tanner: Then on the insurance side of the equation, it's been equally as tough, I think, as people think about that fully loaded cost. So that probably has something to do with that. And then you, you know, the multiplier here is, of course, at what price can you finance this?

Speaker #7: And then, you know, the fourth multiplier here is: at what price can you finance this? And so you're right to highlight that the builders have an advantage.

Dallas Tanner: So you're right in highlighting that the builders have an advantage in terms of how they're buying down rate. But it feels like with, you know, the 30-year being around 6 or low 6s, it's got some room to go, probably to pique enough curiosity. But let's see how the spring and summer play out.

Speaker #7: And in terms of how they're buying down rate, but it feels like with the 30-year being around 6 or low 6s, it's got some room to go probably to peak enough curiosity.

Speaker #7: But let's see how the spring and summer play out.

Speaker #4: If your next question comes from the line of Jesse Letterman with Zellman, please go ahead.

Operator: Your next question comes from the line of Jesse Lederman with Zelman. Please go ahead.

Jesse Lederman: Hey, thanks for taking the question. Can you talk through what you're seeing on the supply side of things? Now, of course, new move-in rent growth, negative 4% during the quarter, coupled with a sequential decline in occupancy. You know, we know development starts for BTR down, multifamily has also come down. What are you seeing from a supply perspective in terms of those pressures alleviating? Thanks.

Speaker #7: Hey, thanks for taking the question. Can you talk through what you're seeing on the supply side of things? Now, of course, new move-in rent growth, negative 4% during the quarter, coupled with a sequential decline in occupancy.

Speaker #7: We know development starts for BFR down, multifamily is also come down. What are you seeing from a supply perspective in terms of those pressures alleviating?

Speaker #7: Thanks. Yeah, this is Tim. Great question. Look, supply in a lot of markets is higher than we've seen in the history of this industry.

Tim Lobner: Yeah, this is Tim. Great question. Look, supply in a lot of markets is higher than we've seen in the history of this industry, and there's a couple different factors, right? And you mentioned some of them, right? There's build-to-rent product that has come online. Most of the peak deliveries in our markets are in the rearview mirror, and so, it's a matter of time before the demand kind of eats that up. You're also seeing scatter-site SFR, both institutionally owned and mom-and-pop, SFR, that's out there. We're seeing, you know, slightly higher level, levels of mom-and-pop SFR. As people choose not to sell, they enter that product into the rental market. And there also is, as, as Dallas talked about earlier, there's the, there's the market for newly built products.

Speaker #7: And there's a couple of different factors, right? And you mentioned some of them, right? There's build-to-rent product that has come online. Most of the peak deliveries in our markets are in the rearview mirror.

Speaker #7: And so it's a matter of time before the demand kind of eats that up. You're also seeing scattered-site SFR, both institutionally owned and mom-and-pop SFR that's out there.

Tim Lobner: You're also seeing scatter-site SFR, both institutionally owned and mom-and-pop, SFR, that's out there. We're seeing, you know, slightly higher level, levels of mom-and-pop SFR. As people choose not to sell, they enter that product into the rental market. And there also is, as, as Dallas talked about earlier, there's the, there's the market for newly built products.

Speaker #7: We're seeing, you know, slightly higher levels of mom-and-pop SFR as people choose not to sell. They enter that product into the rental market. And there also is, as Dallas talked about earlier, there's the market for newly built products.

Tim Lobner: There is a supply, a slight oversupply right now. We're not seeing that grow right now. What we are seeing is that kind of chip away based upon the demand. You know, everybody talks about, you know, homeownership as being kind of the end goal. There's a lot of people, and we see this in our data with our residents; they choose to rent. And so we believe that there is a long-term, healthy demand for our product across our markets. And again, we talked earlier about the specific markets where we do see higher supply, namely the Sun Belt. You've got Florida, the Texas markets, and Arizona, and we do see that in our numbers. But at the same time, lead volume is still there.

Speaker #7: So there is a supply and a slight oversupply right now. We're not seeing that grow right now. What we are seeing is that kind of chip away based upon the demand.

Speaker #7: You know, everybody talks about homeownership as being kind of the end goal. There are a lot of people, and we see this in our data with our residents, who choose to rent.

Tim Lobner: So we believe that there is a long-term, healthy demand for our product across our markets. And again, we talked earlier about the specific markets where we do see higher supply, namely the Sun Belt. You've got Florida, the Texas markets, and Arizona, and we do see that in our numbers. But at the same time, lead volume is still there.

Speaker #7: And so we believe that there is a long-term, healthy demand for our product across our markets. And again, we talked earlier about the specific markets where we do see higher supply.

Speaker #7: Namely, the Sun Belt—you've got Florida, you've got the Texas markets, in Arizona—and we do see that in our numbers. But at the same time, lead volume is still there.

Tim Lobner: A lot of people entering that age, our average age of residents, about 38, 39 years old. So there is just a wave of demand for our product. And when you look at our renewal rates, you know, 75% of-- or renewal rate of 75%, roughly of our book of business, it's pretty obvious that, that people who are renting want to continue to rent. And so, does the supply backdrop concern us? Well, it's there, and I think it's a little bit of a cycle. It's transitory in nature, and we're going to let demand continue to gobble that up over the coming months and quarters.

Tim Lobner: A lot of people entering that age, our average age of residents, about 38, 39 years old. So there is just a wave of demand for our product. And when you look at our renewal rates, you know, 75% of-- or renewal rate of 75%, roughly of our book of business, it's pretty obvious that, that people who are renting want to continue to rent. So, does the supply backdrop concern us? Well, it's there, and I think it's a little bit of a cycle. It's transitory in nature, and we're going to let demand continue to gobble that up over the coming months and quarters.

Speaker #7: A lot of people entering that age are the average age of our residents, about 38 or 39 years old. So there is just a wave of demand for our product.

Speaker #7: And when you look at our renewal rates, you know, 75% of renewal rate of 75% roughly of our book of business, it's pretty obvious that people who are renting want to continue to rent.

Speaker #7: And so, does the supply backdrop concern us? Well, it's there. And I think it's a little bit of a cycle. It's transitory in nature.

Speaker #7: And we're going to let demand continue to gobble that up over the coming months and quarters.

Speaker #4: If your final question comes from the line of John Peloski with Green Street, please go ahead.

Operator: Your final question comes from the line of John Pawlowski with Green Street. Please go ahead.

Dallas Tanner: Hey, thanks for taking the follow-up. I have a two-parter. Forgive the two-part question. Tim, your comments that there are zero concessions on your scatter-site portfolio, does that represent a meaningful improvement from this time last year? And then secondly, for renewals that have already gone out for, I guess, you know, March and April, are we expecting the achieved renewal rate to still hover in this ±4% range, or should it be worse or better?

John Pawlowski: Hey, thanks for taking the follow-up. I have a two-parter. Forgive the two-part question. Tim, your comments that there are zero concessions on your scatter-site portfolio, does that represent a meaningful improvement from this time last year? And then secondly, for renewals that have already gone out for, I guess, you know, March and April, are we expecting the achieved renewal rate to still hover in this ±4% range, or should it be worse or better?

Speaker #7: Hey, thanks for taking the follow-up. I have a two-parter—forgive the two-part question. Tim, your comments that there are zero concessions on your scattered site portfolio.

Speaker #7: Does that represent a meaningful improvement from this time last year? And then secondly, for renewals that have already gone out for, I guess, you know, March and April, are we expecting the achieved renewal rate to still hover in this 4% plus-or-minus range, or should it be worse or better?

Tim Lobner: John, great questions. I'll tackle each of them. The first question on concessions, look, we offer specials through the winter months, historically, and that ranges depending on kind of what we're seeing in the marketplace in terms of the supply and demand fundamentals. We're very nimble. Our pricing structure allows us to do that, to target those specials. And our specials are not significant. They're really around, you know, historically, this cycle, we've offered $500 off, and then for a two-year lease, we've thrown an extra $250. Those specials are off. We are seeing demand tick up, and so there's not the reason to deploy tools like that right now. But again, we've offered them in years past.

Speaker #3: John, great questions. I'll tackle each of them. The first question on concessions—look, we offer specials through the winter months, historically, and that range is depending on kind of what we're seeing in the marketplace in terms of the supply and demand fundamentals.

Speaker #3: We're very nimble. Our pricing structure allows us to do that, to target those specials. And our specials are not significant. They're really around, you know, historically, this cycle we've offered $500 off.

Tim Lobner: They're really around, you know, historically, this cycle, we've offered $500 off, and then for a two-year lease, we've thrown an extra $250. Those specials are off. We are seeing demand tick up, and so there's not the reason to deploy tools like that right now. But again, we've offered them in years past. Then on your second question, can you remind me of the second question?

Speaker #3: And then for a two-year lease, we've thrown in an extra $250. Those specials are off. We are seeing demand tick up, and so there's not the reason to deploy tools like that right now.

Speaker #3: But again, we've offered them in years past. And then, on your second question—can you remind me of the second question?

Tim Lobner: And then on your second question, can you remind me of the second question?

Dallas Tanner: Yeah. Again, maybe clarification on the first one. Again, are concessions a lot lower than this time last year across your platform? The second question is, on achieved renewals that are, for renewals that are due, is that become effective in March and April, or do we expect effective renewal increases still in the 4% range, or should it be better or worse?

John Pawlowski: Yeah. Again, maybe clarification on the first one. Again, are concessions a lot lower than this time last year across your platform? The second question is, on achieved renewals that are, for renewals that are due, is that become effective in March and April, or do we expect effective renewal increases still in the 4% range, or should it be better or worse?

Speaker #7: Yeah, again, clarification on the first one. Again, concession is a lot lower than this time last year across your platform. The second question is on achieved renewals, that is for renewals that are due and become effective in March and April.

Speaker #7: Do we expect effective renewal increases still in the 4% range, or should it be better or worse?

Speaker #3: I think it'll hover around the 4% range in answer to your renewal question. It could, you know, it could go a little bit low, could go high.

Tim Lobner: I think it'll hover around the 4% range, in answer to your renewal, renewal question. It could, you know, could go a little bit low, could go high, but, 4% has been very consistent for us, and we continue to see about 75% of the book, maybe a little bit more renew. And getting back to your, your concession question, look, you know, it's not any more or less than last year. This is, this is typical for what we do, and we take it off this time of year as we see the market return, into our peak leasing season.

Speaker #3: But a 4% has been very consistent for us, and we continue to see about 75% of the book—maybe a little bit more—renew.

Speaker #3: And getting back to your concession question, look, you know, it's not any more or less than last year. This is typical for what we do.

Speaker #3: And we take it off this time of year as we see the market return into our peak leasing season.

Operator: That concludes our question and answer session. I will now turn the call back over to Dallas Tanner for closing remarks.

Speaker #4: That concludes our question and answer session. I will now turn the call back over to Dallas Tanner for closing remarks.

Dallas Tanner: We want to thank everyone for their participation today, and we look forward to seeing everyone at the upcoming investor conference. Talk soon.

Speaker #1: I want to thank everyone for their participation today. And we look forward to seeing everyone at the upcoming Investor Conference. Talk soon.

Operator: Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

Speaker #4: Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

Operator: Please wait. The conference will begin shortly.

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