Q1 2026 Mid America Apartment Communities Inc Earnings Call

April 30, 2026

Operator: Good morning, ladies and gentlemen, welcome to the MAA Q1 2026 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterward, the company will conduct a question-and-answer session. As a reminder, this conference call is being recorded today, 30 April 2026, and in consideration of time, we have a one-question limit. I will now turn the call over to Andrew Schaeffer, Senior Vice President, Treasurer, and Director of Capital Markets at MAA for opening comments.

Speaker #1: Afterward, the company will conduct a question-and-answer session. As a reminder, this conference call is being recorded today. April 30th, 2026, and in consideration of time, we have a one-question limit.

Speaker #1: I will now turn the call over to Andrew Schaeffer, Senior Vice President, Treasurer, and Director of Capital Markets of MAA, for opening comments.

Speaker #2: Thank you, Regina, and good morning, everyone. This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MIA. Members of the management team participating on the call this morning are Brad Hill, Tim Argo, Q1, and Rob Delprori.

Andrew Schaeffer: Thank you, Regina, and good morning, everyone. This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MAA. Members of the management team participating on the call this morning are Brad Hill, Tim Argo, Clay Holder, and Rob DelPriore. Before we begin with prepared comments this morning, I want to point out that as part of this discussion, company management will be making forward-looking statements. Actual results may differ materially from our projections. We encourage you to refer to the forward-looking statements section in yesterday's earnings release and our 34 Act filings with the SEC, which describe risk factors that may impact future results. During this call, we will also discuss certain non-GAAP financial measures. A presentation of the most directly comparable GAAP financial measures as well as reconciliations of the differences between non-GAAP and comparable GAAP measures can be found in our earnings release and supplemental financial data.

Speaker #2: Before we begin with prepared comments this morning, I want to point out that as part of this discussion, company management will be making forward-looking statements.

Speaker #2: Actual results may differ materially from our projections. We encourage you to refer to the forward-looking statements section in yesterday's earnings release and our 34-act filings with the SEC.

Andrew Schaeffer: We encourage you to refer to the forward-looking statements section in yesterday's earnings release and our 34 Act filings with the SEC, which describe risk factors that may impact future results. During this call, we will also discuss certain non-GAAP financial measures. A presentation of the most directly comparable GAAP financial measures as well as reconciliations of the differences between non-GAAP and comparable GAAP measures can be found in our earnings release and supplemental financial data.

Speaker #2: Which describe risk factors that may impact future results. During this call, we will also discuss certain non-gap financial measures. In presentation of the most directly comparable gap financial measures, as well as reconciliations of the differences between non-gap and comparable gap measures, can be found in our earnings release and supplemental financial data.

Speaker #2: Our earnings release and supplement are currently available on the for investors page of our website at www.miac.com. A copy of our prepared comments and an audio recording of this call will also be available on our website later today.

Andrew Schaeffer: Our earnings release and supplement are currently available on the For Investors page of our website at www.maac.com. A copy of our prepared comments and an audio recording of this call will also be available on our website later today. After some brief prepared comments, the management team will be available to answer questions. When we get to Q&A, please be respectful of everyone's time. In an attempt to complete our call within 1 hour due to other earnings calls today, we will limit questions to 1 per analyst. We ask that you rejoin the queue if you have any follow-up questions or additional items to discuss. I will now turn the call over to Brad.

Speaker #2: After some brief prepared comments, the management team will be available to answer questions. When we get to Q&A, please be respectful of

Andrew Schaeffer: When we get to Q&A, please be respectful of everyone's time. In an attempt to complete our call within 1 hour due to other earnings calls today, we will limit questions to 1 per analyst. We ask that you rejoin the queue if you have any follow-up questions or additional items to discuss. I will now turn the call over to Brad.

Speaker #1: Of everyone's time in an attempt to complete our call within one hour due to . Other earnings calls today , we will limit questions to one per analyst .

Speaker #1: We ask that you rejoin the queue if you have any follow up questions or additional items to discuss . I will now turn the call over Brad .

Speaker #2: Well , thanks , Andrew , and good morning everyone As highlighted in our release , we delivered first quarter results that exceeded our expectations , driven by the resilient demand in our footprint .

A. Bradley Hill: Well, thanks, Andrew. Good morning, everyone. As highlighted in our release, we delivered Q1 results that exceeded our expectations, driven by the resilient demand in our footprint, strong resident retention, as well as our focus on expense management and some timing related items. New lease pricing continued to reflect supply pressure in several markets. Despite this pressure, new lease pricing improved sequentially. Supported by our continued strong renewal performance, blended lease over lease pricing improved 140 basis points from Q4. With the bulk of the leasing season ahead, we like our positioning and momentum going into summer with stable occupancy and better 60-day exposure than a year ago.

Brad Hill: Well, thanks, Andrew. Good morning, everyone. As highlighted in our release, we delivered Q1 results that exceeded our expectations, driven by the resilient demand in our footprint, strong resident retention, as well as our focus on expense management and some timing related items. New lease pricing continued to reflect supply pressure in several markets. Despite this pressure, new lease pricing improved sequentially. Supported by our continued strong renewal performance, blended lease over lease pricing improved 140 basis points from Q4.

Speaker #2: Strong , resilient retention as well as our focus on expense management and some time timing related items . New lease pricing continued to reflect supply pressure and in several markets .

Speaker #2: But despite this pressure , new lease pricing improved sequentially and supported by our continued strong renewal performance . Blended lease over lease pricing improved 140 basis points from the fourth quarter , with the bulk of the leasing season ahead .

Brad Hill: With the bulk of the leasing season ahead, we like our positioning and momentum going into summer with stable occupancy and better 60-day exposure than a year ago.

Speaker #2: We like our positioning and momentum going into summer with stable occupancy and better 60 day exposure than a year ago Our high growth markets are producing solid demand to absorb the new supply in a steady manner that we believe will enable continued stable occupancy , favorable renewal , pricing , strong collections and overall earnings performance in line with the outlook we provided in our prior guidance .

A. Bradley Hill: Our high-growth markets are producing solid demand to absorb the new supply in a steady manner that we believe will enable continued stable occupancy, favorable renewal pricing, strong collections, and overall earnings performance in line with the outlook we provided in our prior guidance. Our leasing traffic remains strong and positive migration trends, strong wage growth, and stable employment conditions across our diversified portfolio and markets combine to drive solid demand, as evidenced by Q1 absorption exceeding new supply deliveries in our footprint. Operationally, our on-site teams, actively supported by our asset management team, continue to execute at a high level, controlling expenses while delivering an excellent resident experience, as reflected in our sector-leading Google scores. As a result of our strong customer service and the ongoing single-family affordability challenges, renewals remain consistent, helping to deliver year-over-year blended lease improvement for 5 consecutive quarters.

Brad Hill: Our high-growth markets are producing solid demand to absorb the new supply in a steady manner that we believe will enable continued stable occupancy, favorable renewal pricing, strong collections, and overall earnings performance in line with the outlook we provided in our prior guidance.

Speaker #2: Our leasing traffic remains strong and positive . Migration trends , strong wage growth and stable employment conditions across our diversified portfolio and markets combined to drive solid demand , as evidenced by first quarter absorption exceeding new supply deliveries in our footprint Operationally , our on site teams , actively supported by our asset management team , continue to execute at a high level , controlling expenses while delivering an excellent resident experience .

Brad Hill: Our leasing traffic remains strong and positive migration trends, strong wage growth, and stable employment conditions across our diversified portfolio and markets combine to drive solid demand, as evidenced by Q1 absorption exceeding new supply deliveries in our footprint. Operationally, our on-site teams, actively supported by our asset management team, continue to execute at a high level, controlling expenses while delivering an excellent resident experience, as reflected in our sector-leading Google scores.

Speaker #2: As reflected in our sector leading Google scores . As a result of our strong customer service and the ongoing single family affordability challenges , renewals remain consistent , helping to deliver year over year blended lease improvement for five consecutive quarters We continue to allocate capital in a balanced and disciplined manner , taking advantage of the current pricing dislocation of our existing portfolio in the public market to buy back shares as well as executing on initiatives to deliver long term earnings growth while protecting our strong balance sheet with acquisition cap rates around four and a half for high quality properties in our footprint .

Brad Hill: As a result of our strong customer service and the ongoing single-family affordability challenges, renewals remain consistent, helping to deliver year-over-year blended lease improvement for 5 consecutive quarters.

A. Bradley Hill: We continue to allocate capital in a balanced and disciplined manner, taking advantage of the current pricing dislocation of our existing portfolio in the public market to buy back shares, as well as executing on initiatives to deliver long-term earnings growth while protecting our strong balance sheet. With acquisition cap rates around four and a half for high-quality properties in our footprint, our external growth efforts are predominantly focused on new development through our existing pipeline of owned and controlled land sites representing over 4,300 units of future growth. We started construction on our first project for the year in April, a 286 unit community in the Kansas City market. Based on our current approval and construction timelines, we now expect to start construction on 4 projects this year, reducing our expected development spend for the year to $350 million.

Brad Hill: We continue to allocate capital in a balanced and disciplined manner, taking advantage of the current pricing dislocation of our existing portfolio in the public market to buy back shares, as well as executing on initiatives to deliver long-term earnings growth while protecting our strong balance sheet.

Brad Hill: With acquisition cap rates around four and a half for high-quality properties in our footprint, our external growth efforts are predominantly focused on new development through our existing pipeline of owned and controlled land sites representing over 4,300 units of future growth. We started construction on our first project for the year in April, a 286 unit community in the Kansas City market.

Speaker #2: Our external growth efforts are predominantly focused on new development through our existing pipeline of owned and controlled land sites , representing over 4300 units of future growth .

Speaker #2: We started construction on our first project for the year in April , a 286 unit community in the Kansas City market Based on our current approval and construction timelines , we now expect to start construction on four projects this year .

Brad Hill: Based on our current approval and construction timelines, we now expect to start construction on 4 projects this year, reducing our expected development spend for the year to $350 million.

Speaker #2: Reducing our expected development spend for the year to $350 million . While this is down from the $400 million in our original forecast , it's up from the $315 million we invested and the two projects we started in 2025 .

A. Bradley Hill: While this is down from the $400 million in our original forecast, it's up from the $315 million we invested in the 2 projects we started in 2025. The projects we expect to start this year will deliver in 2028 and 2029 during what we believe will be a more favorable supply-demand environment. As we look forward, we remain encouraged by underlying demand across our markets, declining new deliveries, and the strength of our resident base with continued strong collections and affordable rents at a 20% rent-to-income ratio. Our high-growth markets continue to offer attractive long-term appeal for employers, households, and investors. With positive absorption, stable demand, and market-level occupancies improving, we are optimistic we will continue to build momentum through the spring and summer, supporting improved new lease pricing as the year progresses.

Brad Hill: While this is down from the $400 million in our original forecast, it's up from the $315 million we invested in the 2 projects we started in 2025. The projects we expect to start this year will deliver in 2028 and 2029 during what we believe will be a more favorable supply-demand environment. As we look forward, we remain encouraged by underlying demand across our markets, declining new deliveries, and the strength of our resident base with continued strong collections and affordable rents at a 20% rent-to-income ratio.

Speaker #2: The projects we expect to start this year will deliver in 2028 and 2029 . During what we believe will be a more favorable supply demand environment As we look forward , we remain encouraged by underlying demand across our markets .

Speaker #2: Declining new deliveries and the strength of our resident base with continued strong collections and affordable rents . At a 20% rent to income ratio .

Speaker #2: Our high growth markets continue to offer attractive long term appeal for employers , households and investors with positive absorption . Stable demand and market level occupancies .

Brad Hill: Our high-growth markets continue to offer attractive long-term appeal for employers, households, and investors. With positive absorption, stable demand, and market-level occupancies improving, we are optimistic we will continue to build momentum through the spring and summer, supporting improved new lease pricing as the year progresses.

Speaker #2: Improving We are optimistic we will continue to build momentum through the spring and summer , supporting improved new lease pricing as the year progresses .

Speaker #2: In addition to capturing increased organic growth from our existing asset base through the year , we expect a growing NOI contribution from a number of areas , including new initiatives to drive efficiencies in higher operating margin from our existing portfolio .

A. Bradley Hill: In addition to capturing increased organic growth from our existing asset base through the year. We expect a growing NOI contribution from a number of areas, including new initiatives to drive efficiencies and higher operating margin from our existing portfolio, our growing redevelopment opportunities, as well as a growing development pipeline that continues to lease up. Today, we believe our more diversified and higher quality portfolio, our stronger operating platform, and our stronger balance sheet position us to capture improving performance and to deliver meaningful shareholder value over the approaching recovery cycle. We're excited about the outlook over the next few years. To all our associates across our properties and corporate offices, thank you for your continued dedication and focus. With that, I'll turn the call over to Tim.

Brad Hill: In addition to capturing increased organic growth from our existing asset base through the year. We expect a growing NOI contribution from a number of areas, including new initiatives to drive efficiencies and higher operating margin from our existing portfolio, our growing redevelopment opportunities, as well as a growing development pipeline that continues to lease up.

Speaker #2: Our growing redevelopment opportunities , as well as a growing development pipeline that continues to lease up Today , we believe our more diversified and higher quality portfolio , our stronger operating platform , and our stronger balance sheet position us to capture improving performance and to deliver meaningful shareholder value over the approaching recovery cycle .

Brad Hill: Today, we believe our more diversified and higher quality portfolio, our stronger operating platform, and our stronger balance sheet position us to capture improving performance and to deliver meaningful shareholder value over the approaching recovery cycle. We're excited about the outlook over the next few years. To all our associates across our properties and corporate offices, thank you for your continued dedication and focus. With that, I'll turn the call over to Tim.

Speaker #2: We're excited about the outlook over the next few years to all our associates across our properties and corporate offices . Thank you for your continued dedication and focus .

Speaker #2: And with that , I'll turn the call over to Tim Thank you , Brad , and good morning , everyone . For the first quarter , same store , Noi beat our expectations with in-line same store revenue , combining with lower same store expenses to drive Favourability from a pricing standpoint .

Timothy Argo: Thank you, Brad, good morning, everyone. For Q1, Same-Store NOI beat our expectations with in-line same-store revenue combining with lower same-store expenses to drive the favorability. From a pricing standpoint, new lease over lease growth improved 110 basis points sequentially from Q4, but continues to be under pressure due to elevated but moderating new supply combined with more macro-level economic uncertainty. On the renewal side, similar to the last several quarters, retention rates and lease rates remained strong. Renewal lease over lease growth improved 70 basis points sequentially from Q4, driving blended lease over lease growth up 140 basis points from Q4. Average physical occupancy remained strong at 95.5% for the quarter.

Tim Argo: Thank you, Brad, good morning, everyone. For Q1, Same-Store NOI beat our expectations with in-line same-store revenue combining with lower same-store expenses to drive the favorability. From a pricing standpoint, new lease over lease growth improved 110 basis points sequentially from Q4, but continues to be under pressure due to elevated but moderating new supply combined with more macro-level economic uncertainty.

Speaker #2: New lease of growth . Improved 110 basis points sequentially from the fourth quarter , but continues to be under pressure due to elevated but moderating new supply combined with more macro level economic uncertainty on the renewal side .

Tim Argo: On the renewal side, similar to the last several quarters, retention rates and lease rates remained strong. Renewal lease over lease growth improved 70 basis points sequentially from Q4, driving blended lease over lease growth up 140 basis points from Q4. Average physical occupancy remained strong at 95.5% for the quarter.

Speaker #2: Similar to the last several quarters , retention rates and lease rates remained strong . Renewal lease release growth improved 70 basis points sequentially from the fourth quarter , driving blended lease release growth , up 140 basis points from the fourth quarter .

Speaker #2: Average physical occupancy remained strong at 95.5% for the quarter. Additionally, we had another quarter of strong collections, with net delinquency representing just 0.3% of billed rents, in line with the last several quarters from a market standpoint.

Timothy Argo: Additionally, we had another quarter of strong collections, with net delinquency representing just 0.3% of billed rents in line with the last several quarters. From a market standpoint, many of the markets where we saw strong performance in Q4 and most of last year continued to show strength in Q1. We have noted on several occasions the performance of our mid-tier markets, particularly in Virginia and South Carolina. Richmond, Greenville, the DC area markets, and Charleston all demonstrated strong pricing power and strong occupancy in the quarter. Encouragingly, our three largest markets in terms of Same-Store NOI contribution, Atlanta, Dallas, and Orlando, all outperformed the portfolio in Q1 in blended lease over lease pricing. Austin, though improving, is still a challenge, particularly on the new lease pricing side.

Tim Argo: Additionally, we had another quarter of strong collections, with net delinquency representing just 0.3% of billed rents in line with the last several quarters. From a market standpoint, many of the markets where we saw strong performance in Q4 and most of last year continued to show strength in Q1.

Speaker #2: Many of the markets where we saw strong performance in the fourth quarter and most of year continue to show strength in the first quarter .

Speaker #2: We have noted on several occasions the performance of our mid-tier markets , particularly in Virginia and South Carolina Richmond , Greenville , the DC area markets and Charleston all demonstrated strong pricing power and strong occupancy in the quarter Encouragingly , our three largest markets in terms of same store NOI contribution , Atlanta , Dallas and Orlando all outperformed the portfolio in the first quarter .

Tim Argo: We have noted on several occasions the performance of our mid-tier markets, particularly in Virginia and South Carolina. Richmond, Greenville, the DC area markets, and Charleston all demonstrated strong pricing power and strong occupancy in the quarter. Encouragingly, our three largest markets in terms of Same-Store NOI contribution, Atlanta, Dallas, and Orlando, all outperformed the portfolio in Q1 in blended lease over lease pricing. Austin, though improving, is still a challenge, particularly on the new lease pricing side.

Speaker #2: In blended lease or release pricing Austin , though improving , is still a challenge , particularly on the new lease pricing side Charlotte and Savannah are two other markets facing challenges in the wake of heavy supply pressure in our lease up portfolio .

Timothy Argo: Charlotte and Savannah are two other markets facing challenges in the wake of heavy supply pressure. In our lease-up portfolio, MAA Liberty Row in Charlotte and MAA Breakwater in Tampa completed construction in the Q4 and moved into our lease-up portfolio. We now have five properties in lease-up with a combined occupancy of 68.3% as of the end of the Q1 and an additional two development properties that are actively leasing units. Elevated concessions remain the case for some of these lease-up properties, with up to eight weeks on certain floor plans. However, these projects are still expected to achieve our underwritten yields as markets continue to improve and therefore retain their long-term value creation opportunity. We're off to a quick start in the Q1 on our various targeted redevelopment and repositioning initiatives.

Tim Argo: Charlotte and Savannah are two other markets facing challenges in the wake of heavy supply pressure. In our lease-up portfolio, MAA Liberty Row in Charlotte and MAA Breakwater in Tampa completed construction in the Q4 and moved into our lease-up portfolio. We now have five properties in lease-up with a combined occupancy of 68.3% as of the end of the Q1 and an additional two development properties that are actively leasing units.

Speaker #2: Ma liberty , ROE and Charlotte and Ma Breakwater in Tampa completed construction in the fourth quarter and moved into our lease up portfolio .

Speaker #2: We now have five properties in lease up with a combined occupancy of 68.3% as of the end of the first quarter , and an additional two development properties that are actively leasing units Elevated concessions remain the case for some of these lease up properties , with up to eight weeks of certain floor plans However , these projects are still expected to achieve our underwritten yields as markets continue to improve and therefore retain their long term value creation opportunity We're off to a quick start in the first quarter on our various targeted redevelopment and repositioning initiatives .

Tim Argo: Elevated concessions remain the case for some of these lease-up properties, with up to eight weeks on certain floor plans. However, these projects are still expected to achieve our underwritten yields as markets continue to improve and therefore retain their long-term value creation opportunity. We're off to a quick start in the Q1 on our various targeted redevelopment and repositioning initiatives.

Speaker #2: During the first quarter of 2026 , we completed 1386 interior unit upgrades , up from just over 1100 units that we renovated in the first quarter of 2025 .

Timothy Argo: During Q1 2026, we completed 1,386 interior unit upgrades, up from just over 1,100 units that we renovated in Q1 2025. We achieved rent increases of $104 above non-upgraded units on average unit level spend of $7,349, representing a cash-on-cash return of approximately 17%. These units continue to lease faster than non-renovated units when adjusted for the additional turn time, averaging about 9 days quicker. For our common area and amenity repositioning program, we are over 90% repriced at 6 recent projects, with an average NOI yield above 10% and rent growth far exceeding peer MAA properties. 5 additional projects are nearing construction completion and will begin repricing between May and August.

Tim Argo: During Q1 2026, we completed 1,386 interior unit upgrades, up from just over 1,100 units that we renovated in Q1 2025. We achieved rent increases of $104 above non-upgraded units on average unit level spend of $7,349, representing a cash-on-cash return of approximately 17%. These units continue to lease faster than non-renovated units when adjusted for the additional turn time, averaging about 9 days quicker.

Speaker #2: We achieved rent increases of $104 above Non-upgraded units on average unit level spend of $7,349 , representing a cash on cash return of approximately 17% .

Speaker #2: These units continue to lease faster than non renovated units when adjusted for the additional turn time , averaging about nine days quicker for our common area and amenity repositioning program , we are over 90% repriced at six recent projects , with an average NOI yield above 10% and rent growth far exceeding peer .

Tim Argo: For our common area and amenity repositioning program, we are over 90% repriced at 6 recent projects, with an average NOI yield above 10% and rent growth far exceeding peer MAA properties. 5 additional projects are nearing construction completion and will begin repricing between May and August.

Speaker #2: Emaar properties five additional projects are nearing construction completion and will begin repricing between May and August , and then six additional properties are in the planning phase , with expectations to be complete in time for repricing in the spring of 2027 .

Timothy Argo: Six additional properties are in the planning phase, with expectations to be complete in time for repricing in the spring of 2027. Our Wi-Fi retrofit initiative that began in 2024 and expanded in 2025 continues to grow. We have 27 live properties where the service is rolling out to residents as leases are signed, and we are further expanding this initiative in 2026 to an additional 35 plus properties. As we head into the busier part of the leasing season, we are well positioned. Average physical occupancy for April is 95.5%, in line with April 2025, and 60-day exposure is currently 8.3%, 20 basis points better than where we ended April of 2025.

Tim Argo: Six additional properties are in the planning phase, with expectations to be complete in time for repricing in the spring of 2027. Our Wi-Fi retrofit initiative that began in 2024 and expanded in 2025 continues to grow. We have 27 live properties where the service is rolling out to residents as leases are signed, and we are further expanding this initiative in 2026 to an additional 35 plus properties. As we head into the busier part of the leasing season, we are well positioned.

Speaker #2: Our WiFi retrofit initiative that began in 2024 and expanded in 2025 , continues to grow . We have 27 live properties where the service is rolling out to residents as leases are signed , and we are further expanding this initiative into 2026 to an additional 35 plus properties .

Speaker #2: As we head into the busier part of the leasing season , we are well positioned , average physical occupancy for April is 95.5% , in line with April of 2025 , and 60 day exposure is currently 8.3% 20 basis points better than where we ended April of 2025 , with increased absorption in our markets in the first quarter , where the number of incrementally occupied units exceeded new deliveries , supply pressure continues to moderate .

Tim Argo: Average physical occupancy for April is 95.5%, in line with April 2025, and 60-day exposure is currently 8.3%, 20 basis points better than where we ended April of 2025.

Timothy Argo: With increased absorption in our markets in the Q1, where the number of incrementally occupied units exceeded new deliveries, supply pressure continues to moderate. Despite the previously mentioned economic uncertainty, lead volume remains strong and ahead of last year. Strong renewal performance continues in the Q2, with retention rates and lease over lease growth rates on renewals accepted remaining consistent with what we have seen the last few quarters. With an assumed backdrop of steady demand, we expect gradual seasonal improvement in new lease rates through the Q2 and early Q3, along with consistent renewal growth and retention. As we get later in the year, improving fundamentals will become even more impactful, setting up a stronger 2027. That's all I have in the way of prepared comments. Now I'll turn the call over to Clay.

Tim Argo: With increased absorption in our markets in the Q1, where the number of incrementally occupied units exceeded new deliveries, supply pressure continues to moderate. Despite the previously mentioned economic uncertainty, lead volume remains strong and ahead of last year. Strong renewal performance continues in the Q2, with retention rates and lease over lease growth rates on renewals accepted remaining consistent with what we have seen the last few quarters.

Speaker #2: And despite the previously mentioned economic uncertainty , lead volume remains strong and ahead of last year , strong renewal performance continues in the second quarter , with retention rates and lease to release growth rates on renewals accepted , remaining consistent with what we have seen the last few quarters , with an assumed backdrop of steady demand , we expect gradual seasonal improvement in new lease rates through the second and early third quarters , along with consistent renewal , growth and retention .

Tim Argo: With an assumed backdrop of steady demand, we expect gradual seasonal improvement in new lease rates through the Q2 and early Q3, along with consistent renewal growth and retention. As we get later in the year, improving fundamentals will become even more impactful, setting up a stronger 2027. That's all I have in the way of prepared comments. Now I'll turn the call over to Clay.

Speaker #2: As we get later in the year . Improving fundamentals will become even more impactful to setting up a stronger 2027 . That's all I have in the way of prepared comments .

Speaker #2: Now turn the call over to Clay . Thank you , Tim , and good morning everyone . We reported . core FFO .

A. Clay Holder: Thank you, Tim, and good morning, everyone. We reported Core FFO for the quarter of $2.13 per diluted share, which was $0.02 ahead of our Q1 guidance. For the quarter, same-store expenses were favorable to our guidance by $0.015, along with non-same-store NOI favorable by $0.01, offset by unfavorable interest expense of $0.005.

Clay Holder: Thank you, Tim, and good morning, everyone. We reported Core FFO for the quarter of $2.13 per diluted share, which was $0.02 ahead of our Q1 guidance. For the quarter, same-store expenses were favorable to our guidance by $0.015, along with non-same-store NOI favorable by $0.01, offset by unfavorable interest expense of $0.005.

Speaker #3: For the quarter of $2.13 per diluted share , which was $0.02 ahead of our first quarter guidance for the quarter Same store expenses were favorable to our guidance by one and a half cents , along with non same store NOI favorable by $0.01 , offset by unfavorable interest expense of a half a cent , same store repair and maintenance expenses .

A. Clay Holder: Same-store repair and maintenance expenses, personnel costs, and marketing costs were all below our expectations and were reflected by our disciplined expense control along with expense timing. During the quarter, we funded approximately $100 million in development costs. At quarter end, our development pipeline was at $623 million, leaving an expected $234 million to be funded on the current pipeline over the next three years. As previously discussed, we did adjust the number of development starts from our initial guidance and accordingly lowered our development spend for the year by $50 million. While the size of our pipeline at a point in time can vary based on starts and deliveries during the quarter, we expect the pipeline to grow throughout the year as we begin construction on new projects.

Clay Holder: Same-store repair and maintenance expenses, personnel costs, and marketing costs were all below our expectations and were reflected by our disciplined expense control along with expense timing. During the quarter, we funded approximately $100 million in development costs. At quarter end, our development pipeline was at $623 million, leaving an expected $234 million to be funded on the current pipeline over the next three years.

Speaker #3: Personnel cost and marketing costs were all below our expectations and were reflective of our disciplined expense control . Along with expense , timing .

Speaker #3: During the quarter, we funded approximately $100 million in development costs at quarter end. Our development pipeline was at $623 million, leaving an expected $234 million to be funded on the current pipeline over the next three years.

Speaker #3: As previously discussed, we did adjust the number of development starts from our initial guidance and accordingly lowered our development spend for the year by $50 million.

Clay Holder: As previously discussed, we did adjust the number of development starts from our initial guidance and accordingly lowered our development spend for the year by $50 million. While the size of our pipeline at a point in time can vary based on starts and deliveries during the quarter, we expect the pipeline to grow throughout the year as we begin construction on new projects.

Speaker #3: While the size of our pipeline at a point in time can vary based on starts and deliveries during the quarter , we expect the pipeline to grow throughout the year .

Speaker #3: As we begin construction on new projects , our balance sheet remains in great shape to support this and other growth initiatives . At the end of the quarter , we had a nearly $840 million in combined cash and borrowing capacity under our revolving credit facility and our net debt to EBITDA ratio was four and a half times at quarter end .

A. Clay Holder: Our balance sheet remains in great shape to support this and other growth initiatives. At the end of the quarter, we had a nearly $840 million in combined cash and borrowing capacity under our revolving credit facility, and our Net Debt to EBITDA ratio was 4.5 times. At quarter end, our outstanding debt had an average maturity of 6.1 years at an effective rate of 3.9%. During February, we issued $200 million of 7-year public bonds at an effective rate of just over 4.6%, using proceeds to repay borrowings under our commercial paper program. Also during the quarter, we repurchased 558,000 shares of our common stock at a weighted average share price of $130.46 for a total of $73 million.

Clay Holder: Our balance sheet remains in great shape to support this and other growth initiatives. At the end of the quarter, we had a nearly $840 million in combined cash and borrowing capacity under our revolving credit facility, and our Net Debt to EBITDA ratio was 4.5 times. At quarter end, our outstanding debt had an average maturity of 6.1 years at an effective rate of 3.9%. During February, we issued $200 million of 7-year public bonds at an effective rate of just over 4.6%, using proceeds to repay borrowings under our commercial paper program.

Speaker #3: Our outstanding debt had an average maturity of 6.1 years at an effective rate of 3.9% . During February , we issued $200 million of seven year public bonds at an effective rate of just over 4.6% .

Speaker #3: Using proceeds to repay borrowings under our commercial paper program. Also, during the quarter, we repurchased 550,000 shares of our common stock at a weighted average share price of $130.46.

Clay Holder: Also during the quarter, we repurchased 558,000 shares of our common stock at a weighted average share price of $130.46 for a total of $73 million.

Speaker #3: For a total of $73 million . As for our full year outlook , with the bulk of the leasing season ahead of us , we are reaffirming the midpoint of our same store and core FFO guidance for the year .

A. Clay Holder: As for our full year outlook with the bulk of the leasing season ahead of us, we are reaffirming the midpoint of our same-store and Core FFO guidance for the year while tightening the Core FFO range. For Q2, we expect Core FFO to be in the range of $2.00 and $2.12 per diluted share, or $2.06 per share at the midpoint. Our Q2 guidance reflects the typical seasonal increase in leasing as well as higher maintenance related operating costs. The increase in interest expense from Q1 to Q2 is largely attributable to the delivery of additional development units and incremental borrowings associated with share repurchases and the litigation settlement. These impacts and interest expense are expected to be partially offset by proceeds from property dispositions. That is all that we have in the way of prepared comments.

Clay Holder: As for our full year outlook with the bulk of the leasing season ahead of us, we are reaffirming the midpoint of our same-store and Core FFO guidance for the year while tightening the Core FFO range. For Q2, we expect Core FFO to be in the range of $2.00 and $2.12 per diluted share, or $2.06 per share at the midpoint. Our Q2 guidance reflects the typical seasonal increase in leasing as well as higher maintenance related operating costs.

Speaker #3: While tightening the core FFO range for the quarter , we expect core FFO to be in the range of $2 and $2.12 per diluted share , or $2.06 per share , at the midpoint .

Speaker #3: Our second quarter guidance reflects the typical seasonal increase in leasing , as well as higher maintenance related operating costs . The increase in interest expense from first to second quarter is largely attributable to the delivery of additional development units and incremental borrowings associated with share repurchases and the litigation settlement .

Clay Holder: The increase in interest expense from Q1 to Q2 is largely attributable to the delivery of additional development units and incremental borrowings associated with share repurchases and the litigation settlement. These impacts and interest expense are expected to be partially offset by proceeds from property dispositions. That is all that we have in the way of prepared comments.

Speaker #3: These impacts to interest expense are expected to be partially offset by proceeds from property dispositions . That is all that we have in the way of prepared comments .

Speaker #3: So , Regina , we will now turn the call back to you for questions .

A. Clay Holder: Regina, we will now turn the call back to you for questions.

Clay Holder: Regina, we will now turn the call back to you for questions.

Speaker #4: We will now open the call up for questions . If you'd like to ask a question , please press star . Then one on your touchtone phone .

Operator 2: We will now open the call up for questions. If you'd like to ask a question, please press star then one on your touch tone phone. If you'd like to withdraw your question, press star then one again. Our first question will come from the line of Eric Wolfe with Citigroup. Please go ahead.

Operator: We will now open the call up for questions. If you'd like to ask a question, please press star then one on your touch tone phone. If you'd like to withdraw your question, press star then one again. Our first question will come from the line of Eric Wolfe with Citigroup. Please go ahead.

Speaker #4: If you'd like to withdraw your question , press star . Then one again . Our first question will come from the line of Eric Wolfe with Citi .

Speaker #4: Please go ahead

Speaker #5: Hey . Good morning . Thanks for taking my question . You know , based on your guidance , you're expecting blended rates to ramp through the year .

Eric Wolfe: Hey, good morning. Thanks for taking my question. you know, based on your guidance, you're expecting blended rates to ramp through the year. I think you just said a moment ago that you're expecting sort of a typical seasonal impact in the Q2. Could you just talk about, you know, sort of specifically what you expect to see over the next couple months? I think last quarter you actually gave a sort of the guidance for Q1 blends. I was hoping you could do the same for the Q2 blends and talk about, you know, whether you're finally starting to see some of the supply impact easing in some of your markets.

Speaker #5: I think you just said a moment ago that you're expecting sort of a typical seasonal impact in the second quarter . Could you just talk about , you know , sort of specifically what you expect to see over the next couple of months ?

Speaker #5: I think last quarter, you actually gave a sort of guidance for first quarter blend, so was hoping you could do the same for the second quarter blends and talk about whether you're finally starting to see some of the supply impact easing in some of your markets.

Eric Wolfe: I was hoping you could do the same for the Q2 blends and talk about, you know, whether you're finally starting to see some of the supply impact easing in some of your markets.

Speaker #2: Yeah . This is Tim . I'll answer that and I'll , I'll walk you through kind of how we're thinking about our blended guidance for the year .

Timothy Argo: Yeah. Eric, this is Tim. I'll answer that and I'll walk you through kind of how we're thinking about our blended guidance for the year. Guidance remains 1% to 1.5% blended for the full year. As we reported, we did -0.3% blended in Q1, but we are starting to see some steady incremental improvement on the new lease side, and then continue to see the steady renewals. As we think about the rest of the year, to your point, like we would expect new lease pricing to continue to accelerate through to about July and then start to moderate seasonally, though we expect that seasonal moderation to be less so in the back part of the year than it typically is as we continue to see the supply impact moderate.

Tim Argo: Yeah. Eric, this is Tim. I'll answer that and I'll walk you through kind of how we're thinking about our blended guidance for the year. Guidance remains 1% to 1.5% blended for the full year. As we reported, we did -0.3% blended in Q1, but we are starting to see some steady incremental improvement on the new lease side, and then continue to see the steady renewals.

Speaker #2: So guidance remains 1 to 1 and a half blended for the full year . As we reported , we did -0.3% blended in Q1 , but we are starting to see some steady incremental improvement on the on the new lease side .

Speaker #2: And then continue to see the steady renewals . So as we think about the rest of the year to your point , like we would expect new lease pricing to continue to accelerate through to about July and then start to moderate seasonally , though we expect that seasonal moderation to be less so in the back part of the year .

Tim Argo: As we think about the rest of the year, to your point, like we would expect new lease pricing to continue to accelerate through to about July and then start to moderate seasonally, though we expect that seasonal moderation to be less so in the back part of the year than it typically is as we continue to see the supply impact moderate.

Speaker #2: And it typically is , as we continue to see the supply impact , moderate continue to think that renewals will be in that five plus range and stay pretty consistent .

Timothy Argo: Continue to think that renewals will be in that 5-plus range and stay pretty consistent. If you think through all that, gets our 1 to 1.5, you're kind of at a 1.3 to 1.8 blended for the last 3 quarters of the year. You can kind of think about how that trajectory will work out from where we are here and using that seasonal curve that I talked about.

Tim Argo: Continue to think that renewals will be in that 5-plus range and stay pretty consistent. If you think through all that, gets our 1 to 1.5, you're kind of at a 1.3 to 1.8 blended for the last 3 quarters of the year. You can kind of think about how that trajectory will work out from where we are here and using that seasonal curve that I talked about.

Speaker #2: So if you think through all that , to get to our 1 to 1 and a half , you're kind of in a one 3 to 1 eight blended for the last three quarters of the year .

Speaker #2: So you can kind of think about how that trajectory will work out from where we are here and using that seasonal curve that I talked about

Speaker #4: Our next question will come from the line of Galen with Bank of America . Please go ahead

Operator 2: Our next question will come from the line of Jana Galan with Bank of America. Please go ahead.

Operator: Our next question will come from the line of Jana Galan with Bank of America. Please go ahead.

Speaker #6: Thank you . Good morning . Sorry , Tim . Question for you again . Can you maybe speak to performance on both the concessions and supply absorption in Atlanta and in Dallas

Jana Galan: Thank you. Good morning. Sorry, Tim, question for you again. Can you maybe speak to performance on both the concessions and supply absorption in Atlanta and in Dallas?

Speaker #2: Yeah . So Atlanta and Dallas , we continue to see some some pretty , pretty solid performance , particularly in Dallas . If I look at Dallas for a moment and you look at where we are from a pricing standpoint right now , and occupancy standpoint compared to , say , this time last year , we saw about a 240 basis point improvement in blended pricing from Q1 25 to Q2 , Q1 26 and steady , steady occupancy , along with that .

Timothy Argo: Atlanta and Dallas, we continue to see some solid performance, particularly in Dallas. If I look at Dallas for a moment, and you look at where we are from a pricing standpoint right now and an occupancy standpoint compared to, say, this time last year, we saw about a 240 basis point improvement in blended pricing from Q1 2025 to Q1 2026 and steady occupancy along with that. Similarly, in Atlanta, we saw about a 50 basis point increase from blended pricing last year to this year and about a 20 basis point increase in occupancy. Atlanta probably started to recover for us a little bit early, and we've seen that continue to stabilize and move forward. Dallas was a little bit later, but we're seeing some good strength out of that.

Tim Argo: Atlanta and Dallas, we continue to see some solid performance, particularly in Dallas. If I look at Dallas for a moment, and you look at where we are from a pricing standpoint right now and an occupancy standpoint compared to, say, this time last year, we saw about a 240 basis point improvement in blended pricing from Q1 2025 to Q1 2026 and steady occupancy along with that. Similarly, in Atlanta, we saw about a 50 basis point increase from blended pricing last year to this year and about a 20 basis point increase in occupancy.

Speaker #2: Similarly , Atlanta , we saw about a 50 basis point increase from blended pricing last year to this year . And about a 20 basis point increase in occupancy .

Speaker #2: So Atlanta probably started to recover for us a little bit early . And we've seen that continue to stabilize and move forward . Dallas is was a little bit later , but we're seeing some good strength out of that .

Tim Argo: Atlanta probably started to recover for us a little bit early, and we've seen that continue to stabilize and move forward. Dallas was a little bit later, but we're seeing some good strength out of that.

Speaker #2: As I just mentioned , and expect Dallas to be one of our stronger performing markets this year . We're seeing a pretty broad base .

Timothy Argo: As I just mentioned, I expect Dallas to be one of our stronger performing markets this year. We're seeing a pretty broad base. There's still some pressure in the Allen/McKinney areas. Uptown is performing well, some of the other suburban markets. Similar in Atlanta, we're seeing still some of the in-town and downtown, midtown, Buckhead submarkets outperform some of the suburbs. Duluth and Smyrna are still a little bit weaker, still seeing higher concessions. For Dallas, we've seen concessions come down a little bit. They're not as broad-based in Dallas as some of the other markets. We have seen some relief there, particularly in the urban areas. We talked about Atlanta, the concessions were coming down a little bit last quarter, and they made pretty consistent with where they were last quarter.

Tim Argo: As I just mentioned, I expect Dallas to be one of our stronger performing markets this year. We're seeing a pretty broad base. There's still some pressure in the Allen/McKinney areas. Uptown is performing well, some of the other suburban markets. Similar in Atlanta, we're seeing still some of the in-town and downtown, midtown, Buckhead submarkets outperform some of the suburbs. Duluth and Smyrna are still a little bit weaker, still seeing higher concessions.

Speaker #2: There's still some pressure in for that . Allen McKinney areas , but uptown is performing well . Some of the other suburban markets and then similar to Atlanta , we're seeing still some of the the in town and downtown Midtown Buckhead submarkets out before some of the suburbs , Duluth and Smyrna are still a little bit weaker .

Speaker #2: Still seeing higher concessions . But for Dallas , we've seen concessions come down a little bit there . Not not as broad based in Dallas as some of the other markets .

Tim Argo: For Dallas, we've seen concessions come down a little bit. They're not as broad-based in Dallas as some of the other markets. We have seen some relief there, particularly in the urban areas. We talked about Atlanta, the concessions were coming down a little bit last quarter, and they made pretty consistent with where they were last quarter.

Speaker #2: So we have seen some relief there , particularly in the urban areas . And then we talked about Atlanta , the concessions were coming down a little bit last quarter .

Speaker #2: And they made pretty consistent with where they were last quarter . You still still have , you know , a month or so out there on average , but the submarkets that I've talked about have come down quite a bit

Timothy Argo: You still have, you know, a month or so out there on average, but the submarkets that I talked about have come down quite a bit.

Tim Argo: You still have, you know, a month or so out there on average, but the submarkets that I talked about have come down quite a bit.

Speaker #4: Our next question comes from the line of Austin Wurschmidt , KeyBanc . Please go ahead

Operator 2: Our next question comes from the line of Austin Wurschmidt with KeyBank. Please go ahead.

Operator: Our next question comes from the line of Austin Wurschmidt with KeyBank. Please go ahead.

Speaker #7: Thanks . Good morning . Kind of sticking with Tim here . One on on new lease rate growth . I know you had some weather disruption in the first quarter .

Austin Wurschmidt: Thanks. Good morning. Kind of sticking with Tim here. One on new lease rate growth. I know you had some weather disruption in Q1. Were you surprised though at the pace of improvement in new lease rate growths versus Q4? Are you seeing that pace improve or accelerate, I guess, into Q2? Or is it more similar from what you saw from Q4 of last year into Q1 of this year? Thanks.

Speaker #7: I guess . Were you surprised though at the pace of improvement in new lease rate growths versus the fourth quarter . And are you seeing that pace improve or accelerate , I guess , into the second quarter or is it more similar from what you saw from the fourth quarter of last year into the first quarter of this year ?

Speaker #7: Thanks .

Speaker #2: Yeah . I mean , if you remember last year , we were seeing some some strong acceleration in new lease rates through about April .

Timothy Argo: Yeah. I mean, if you remember last year, we were seeing some strong acceleration in new lease rates through about April, it really kind of plateaued with Liberation Day, we saw it sort of peak there and not really get momentum past May. I think what we're seeing this year is more of a steady acceleration. Well, to your point, February kind of stalled out for a little bit and brought Q1 new lease pricing a little bit down from where we expected, we saw it quickly return in March, we're seeing some momentum play out in April as well. We think about, you know, where we are with exposure and occupancy. I would expect May to outperform where we were in May last year.

Tim Argo: Yeah. I mean, if you remember last year, we were seeing some strong acceleration in new lease rates through about April, it really kind of plateaued with Liberation Day, we saw it sort of peak there and not really get momentum past May. I think what we're seeing this year is more of a steady acceleration.

Speaker #2: And then it and then it really kind of plateaued with , with Liberation Day . And we , we saw it sort of peak there and not really get get momentum past may I think what we're seeing this year is more of a steady acceleration .

Speaker #2: Well , to your point , February kind of stalled out for a little bit . And brought Q1 new lease pricing a little bit down from from where we expected .

Tim Argo: Well, to your point, February kind of stalled out for a little bit and brought Q1 new lease pricing a little bit down from where we expected, we saw it quickly return in March, we're seeing some momentum play out in April as well. We think about, you know, where we are with exposure and occupancy. I would expect May to outperform where we were in May last year.

Speaker #2: But then we saw it quickly return in March , and then we're seeing some momentum play play out in April as well . And then we think about , you know , where we are with exposure and occupancy .

Speaker #2: I would expect May to outperform where we were in May last year, where we again were kind of stalled out. So I would say we're seeing a more seasonal or more normal acceleration in new lease rates this year.

Timothy Argo: Where it kind of stalled out. I would say we're seeing a more seasonal or more normal acceleration of new lease rates this year. Last year it was a little quicker, but then it slowed to a complete halt. I think we would expect that not to continue. All the, you know, the stats we look at, where we are with exposure, where we are with lead volume, where we are with occupancy, and kind of seeing what's out there with pre-leasing, we would expect that momentum to continue beyond May, unlike it did last year.

Tim Argo: Where it kind of stalled out. I would say we're seeing a more seasonal or more normal acceleration of new lease rates this year. Last year it was a little quicker, but then it slowed to a complete halt. I think we would expect that not to continue. All the, you know, the stats we look at, where we are with exposure, where we are with lead volume, where we are with occupancy, and kind of seeing what's out there with pre-leasing, we would expect that momentum to continue beyond May, unlike it did last year.

Speaker #2: Last year was a little quicker , but then it slowed to a complete halt . I think we would expect that not to continue in all the , you know , the stats we look at where we are with exposure , where we are with lead volume , where we are with occupancy , and kind of seeing what's what's out there with Pre-leasing , we would expect that momentum to continue beyond May .

Speaker #2: Unlike it did last year . Yeah . And I would just add a couple of points to , to what Tim's saying . Just speaking more broadly , I mean , I think one of the things that gives us encouragement about the trajectory as Tim was mentioned a moment ago , as we go throughout the balance of the year , is first , if you look at just the broad demand fundamentals in our region of the country , continue to to screen quite well , really across the board , you know , job growth continues to be resilient .

A. Bradley Hill: Yeah, I would just add a couple of points to what Tim's saying, just speaking more broadly. I mean, I think, you know, one of the things that gives us encouragement about the trajectory, as Tim was mentioning a moment ago, as we go throughout the balance of the year is, first, if you look at just the broad demand fundamentals in our region of the country continue to screen quite well really across the board. You know, job growth continues to be resilient. The other demand factors, migration, trends, population growth, all continue to be very resilient within our region of the country. If you look at just the momentum that Tim was just talking about, you know, market level occupancies in Q1 continue to firm up.

Brad Hill: Yeah, I would just add a couple of points to what Tim's saying, just speaking more broadly. I mean, I think, you know, one of the things that gives us encouragement about the trajectory, as Tim was mentioning a moment ago, as we go throughout the balance of the year is, first, if you look at just the broad demand fundamentals in our region of the country continue to screen quite well really across the board. You know, job growth continues to be resilient.

Speaker #2: The other demand factors , migration trends , population growth , all continue to be very resilient within our region of the country . And then if you look at just the momentum that Tim was just talking about , you know , market level occupancies in the first quarter continue to firm up .

Brad Hill: The other demand factors, migration, trends, population growth, all continue to be very resilient within our region of the country. If you look at just the momentum that Tim was just talking about, you know, market level occupancies in Q1 continue to firm up.

Speaker #2: You look at absorption numbers exceeding deliveries in the first quarter with the renewal positioning that we have right now , as Tim mentioned , our occupancy stable and our exposure is in a better position than it was this time last year , puts us in a really good position to continue the momentum that we've seen in April as we get into May , in June .

A. Bradley Hill: You look at absorption numbers exceeding deliveries in Q1. With the renewal positioning that we have right now, as Tim mentioned, our occupancy's stable and our exposure is in a better position than it was this time last year, puts us in a really good position to continue the momentum that we've seen in April, as we get into May, and June. You know, we feel like the momentum is building. From the dashboards that we have to date, that momentum continues to build in Q2, which is what we need to see in order to continue to see new lease progression throughout the year, which aligns with what our expectations are for the year.

Brad Hill: You look at absorption numbers exceeding deliveries in Q1. With the renewal positioning that we have right now, as Tim mentioned, our occupancy's stable and our exposure is in a better position than it was this time last year, puts us in a really good position to continue the momentum that we've seen in April, as we get into May, and June. You know, we feel like the momentum is building.

Speaker #2: And so we feel like the the momentum is building from the dashboards that we have to date , that momentum continues to build in the second quarter , which is what we need to see in order to continue to continue to see new lease progression throughout the year , which aligns with what our expectations are for the year .

Brad Hill: From the dashboards that we have to date, that momentum continues to build in Q2, which is what we need to see in order to continue to see new lease progression throughout the year, which aligns with what our expectations are for the year.

Speaker #4: Our next question will come from the line of Randall Saint-Just with Mizuho . Please go ahead .

Operator 2: Our next question will come from the line of Haendel St. Juste with Mizuho. Please go ahead.

Operator: Our next question will come from the line of Haendel St. Juste with Mizuho. Please go ahead.

Speaker #8: Hey there . Maybe a question on capital deployment . I understand the decision to lower the acquisition guide , given market pricing and your cost of capital , but maybe expound a bit more on the decision to pull back on some of the new development starts ?

Haendel St. Juste: Hey there. Maybe a question on capital deployment. Understand the decision to lower the acquisition guide given market pricing and your cost of capital, but maybe expound a bit more on the decision to pull back on some of the new development starts. Would that lower use of capital, I guess lower capital deployment overall suggest you might be more open to doing more stock buybacks here in the near term, given the compelling yield on that side? Thanks.

Speaker #8: And would that lower use of capital? I guess lower capital deployment overall suggests you might be more open to doing more stock buybacks here in the near term, given the compelling yield on that side?

Speaker #8: Thanks .

Speaker #2: Yeah . Hey . This is Brad . Well , you know , as I mentioned in my opening comments , you know , the pullback in development spend , you know , just , you know , development is a little bit fluid with timing of when deals can start and approvals can take a little bit longer than you think .

A. Bradley Hill: Yeah. Hey, Haendel, this is Brad. Well, you know, as I mentioned in my opening comments, you know, the pullback in development spend, you know, just, you know, development is a little bit fluid with timing of when deals can start. Approvals can take a little bit longer than you think, things of that nature. You know, that's the nature of the reduction from, as we mentioned in the prior call, we could start between 5 and 7 deals this year. Just based where we are in the approval cycle of those, it looks like it's gonna be closer to 4. You know, you never know. Some of those could get approvals earlier, and if the economics make sense, we could start those toward the back part of the year.

Brad Hill: Yeah. Hey, Haendel, this is Brad. Well, you know, as I mentioned in my opening comments, you know, the pullback in development spend, you know, just, you know, development is a little bit fluid with timing of when deals can start. Approvals can take a little bit longer than you think, things of that nature. You know, that's the nature of the reduction from, as we mentioned in the prior call, we could start between 5 and 7 deals this year.

Speaker #2: Things of that nature . So , you know , that's the nature of the reduction from , as we mentioned in the prior call , we could start between 5 and 7 deals this year .

Speaker #2: You know , just based on where we are in the approval cycle of those , it looks like it's going to be closer to four .

Brad Hill: Just based where we are in the approval cycle of those, it looks like it's gonna be closer to 4. You know, you never know. Some of those could get approvals earlier, and if the economics make sense, we could start those toward the back part of the year.

Speaker #2: But , you know , you never know some of those could get approvals earlier . And if the economics make sense , we could could start those toward the back part of the year .

Speaker #2: But that's where we certainly expect to , to , to be in terms of development for the year . We continue to believe that's one of the best uses of our capital to to deliver long term value for shareholders .

A. Bradley Hill: That's where we certainly expect to be in terms of development for the year. We continue to believe that's one of the best uses of our capital to deliver long-term value for shareholders, so we'll continue to focus on that. As Clay mentioned in his comments, we expect the size of that pipeline to continue to grow. Our spend for the year is, you know, is down from what we originally expected, but still up from where it was last year. We expect that on an ongoing basis to be into that $300 to $400 million range. No real change in terms of that.

Brad Hill: That's where we certainly expect to be in terms of development for the year. We continue to believe that's one of the best uses of our capital to deliver long-term value for shareholders, so we'll continue to focus on that. As Clay mentioned in his comments, we expect the size of that pipeline to continue to grow. Our spend for the year is, you know, is down from what we originally expected, but still up from where it was last year. We expect that on an ongoing basis to be into that $300 to $400 million range. No real change in terms of that.

Speaker #2: So we'll continue to focus on that . As Clay mentioned in his comments , we expect that the size of that pipeline to continue to to grow our spend for the year is , you know , is down from what we originally expected , but still up from where it was last year .

Speaker #2: And we expect that on an ongoing basis to be in that $300 to $400 million range. So no real change in terms of that.

Speaker #2: But , you know , I think in terms of share repurchases , you know , as we think about , you know , really how best to allocate capital , you know , we're really focused on generating high quality , compounding earnings growth that supports a steady and growing dividend .

A. Bradley Hill: You know, I think in terms of share repurchases, you know, as we think about, you know, really how best to allocate capital, you know, we're really focused on generating high quality compounding earnings growth that supports a steady and growing dividend. We really think that's the best way to drive TSR performance over the full cycle. You know, when we do that, there are three things that we're considering when we decide where do we put our capital. The first is, you know, we wanna take a very balanced approach. That balanced approach really helps us take advantage of near-term opportunities, which right now just happens to be the share buybacks. You've seen us be active in that space.

Brad Hill: You know, I think in terms of share repurchases, you know, as we think about, you know, really how best to allocate capital, you know, we're really focused on generating high quality compounding earnings growth that supports a steady and growing dividend. We really think that's the best way to drive TSR performance over the full cycle. You know, when we do that, there are three things that we're considering when we decide where do we put our capital.

Speaker #2: We really think that's the best way to to drive TSR performance over the full cycle . And you know , when we do that , there are three things that we're considering when we decide where do we put our capital in .

Speaker #2: The first is, we want to take a very balanced approach, and that balanced approach really helps us take advantage of near opportunities, which right now just happens to be the share buybacks.

Brad Hill: The first is, you know, we wanna take a very balanced approach. That balanced approach really helps us take advantage of near-term opportunities, which right now just happens to be the share buybacks. You've seen us be active in that space.

Speaker #2: And so you've seen us be active in that space , but we also want to be able to take advantage of opportunities that we think .

A. Bradley Hill: We also wanna be able to take advantage of opportunities that we think.

Brad Hill: We also wanna be able to take advantage of opportunities that we think contribute to that long-term TSR performance, and that's where development comes in. We still think that's the best opportunity for us to drive long-term TSR performance. We're getting accretive returns, and today those are in the mid sixes. And our development importantly has been able to deliver higher NOI growth about 50 to 100 basis points on a long-term basis versus our existing portfolio.

Speaker #2: Again , contribute to that long term . TSR performance . And that's where development comes in . We still think that's the best opportunity for us to drive long term .

A. Bradley Hill: Contribute to that long-term TSR performance, and that's where development comes in. We still think that's the best opportunity for us to drive long-term TSR performance. We're getting accretive returns, and today those are in the mid sixes. And our development importantly has been able to deliver higher NOI growth about 50 to 100 basis points on a long-term basis versus our existing portfolio. We wanna be balanced in terms of what we're doing. The second thing is we wanna protect our balance sheet capacity. You're not gonna see us go out and leverage up our balance sheet because we wanna protect what we're able to do with our balance sheet. The third thing, you know, really is, we like our portfolio.

Speaker #2: TSR performance . We're getting accretive returns in today . Those are in the mid 60s . In our development , importantly has been able to deliver higher NOI growth .

Speaker #2: About 50 to 100 basis points on a long term basis versus our existing portfolio . So we want to be balanced in terms of what we're doing .

Brad Hill: We wanna be balanced in terms of what we're doing. The second thing is we wanna protect our balance sheet capacity. You're not gonna see us go out and leverage up our balance sheet because we wanna protect what we're able to do with our balance sheet. The third thing, you know, really is, we like our portfolio.

Speaker #2: The second thing is we want to protect our balance sheet capacity . And so you're not going to see us go out and leverage up our balance sheet because we want to protect what we're able to do with our balance sheet .

Speaker #2: And then the third thing , you know , really is we like our portfolio . We like where we're located . We like the markets we're in .

A. Bradley Hill: We like where we're located, we like the markets we're in, we don't have a need to go and really, materially reallocate capital amongst our markets, which, you know, can drive certainly higher, dispositions and capital redeployment. That's really how we're looking at, you know, our various opportunities for capital allocation and where share repurchases falls within that.

Brad Hill: We like where we're located, we like the markets we're in, we don't have a need to go and really, materially reallocate capital amongst our markets, which, you know, can drive certainly higher, dispositions and capital redeployment. That's really how we're looking at, you know, our various opportunities for capital allocation and where share repurchases falls within that.

Speaker #2: So we don't have a need to go and really materially reallocate capital amongst our markets , which can drive certainly higher dispositions in capital redeployment .

Speaker #2: So so that's really how we're looking at , you know , our various opportunities for capital allocation and where share repurchases falls within that

Speaker #4: Our next question comes from the line of Alexander Goldfarb with Piper Sandler . Please go ahead

Operator 2: Our next question comes from the line of Alexander Goldfarb with Piper Sandler. Please go ahead.

Operator: Our next question comes from the line of Alexander Goldfarb with Piper Sandler. Please go ahead.

Speaker #9: Hey , good morning down there . Just a question on the guidance you guys talk pretty optimistically about the balance of the year acceleration .

Alexander Goldfarb: Hey. Morning down there. Just a question on the guidance. You guys talk pretty optimistically about the balance of the year acceleration. You know, you're talking about, you know, this year's leasing trends, not, you know, not looking to stall like last year did. Yet you know, adjusted guidance, you basically tightened the range. A lot of your peers sort of left it open-ended to revisit guidance in the Q2. Based on your commentary, it would sound like, you know, you think there's potential for upside, yet you trim the top end and tighten the range. Can you just talk a little bit more about your decision to revisit guidance now versus waiting to the Q2?

Speaker #9: You talking about , you know , this year's leasing trends , not , you know , not looking to stall like last year did , but yet you , you know , adjusted guidance .

Speaker #9: You basically tighten the range . A lot of your peers sort of left it open ended to revisit guidance in second quarter . So based on your commentary , it would sound like , you know , you'd think there's potential for upside , but yet you trim the top end and tighten the range .

Speaker #9: So, can you just talk a little bit more about your decision to revisit guidance now versus waiting until the second quarter?

Alexander Goldfarb: Can you just talk a little bit more about your decision to revisit guidance now versus waiting to the Q2?

Speaker #3: Yeah . Alex , this is .

A. Clay Holder: Yeah, Alex, this is Clay. Just, you know, the real reason that we kind of brought down the guidance there, at least the range, keeping our midpoint the same as we came out with our initial guidance. We were a little wider in our range as we started the year than what we would typically do. We did that because of the macro uncertainty that Tim mentioned earlier, some of the demand concerns that were out there at that time. As we sit here today, you know, that's lessened. We've gotten Q1 behind us, we tightened that range down to a range that we would typically go out the year with. That's really all that we were reflecting by tightening the range.

Clay Holder: Yeah, Alex, this is Clay. Just, you know, the real reason that we kind of brought down the guidance there, at least the range, keeping our midpoint the same as we came out with our initial guidance. We were a little wider in our range as we started the year than what we would typically do. We did that because of the macro uncertainty that Tim mentioned earlier, some of the demand concerns that were out there at that time. As we sit here today, you know, that's lessened.

Speaker #2: Clay . Just , you know .

Speaker #3: The real reason that we kind of brought down the guidance there, at least the range, keeping our midpoint the same.

Speaker #2: Same as we came out with our initial guidance . But we were , we were a little wider in our range as we started the year than what we would typically do .

Speaker #2: And we did that because of the macro uncertainty that Tim mentioned earlier . Some of the demand concerns that were out there at that time .

Speaker #2: As we sit here today , you know , that's less than we've gotten one quarter behind us . And so we we tightened that range down to a to a range that we would typically go out the year with .

Clay Holder: We've gotten Q1 behind us, we tightened that range down to a range that we would typically go out the year with. That's really all that we were reflecting by tightening the range. Still feel very confident in our overall guidance as we move in throughout the year, though.

Speaker #2: And so that's , that's really all that we were reflecting by tightening the range still feel very confident in our , in our overall guidance as we move in throughout the year , though

A. Clay Holder: Still feel very confident in our overall guidance as we move in throughout the year, though.

Speaker #4: Our next question comes from the line of Adam Kramer with Morgan Stanley. Please go ahead.

Operator 2: Our next question comes from the line of Adam Kramer with Morgan Stanley. Please go ahead.

Operator: Our next question comes from the line of Adam Kramer with Morgan Stanley. Please go ahead.

Speaker #10: Hey guys . Good morning . Just wanted to ask a little bit about sort of the the renewal growth with regards to concessions .

Adam Kramer: Hey, guys. Good morning. Just wanted to ask a little bit about the renewal growth with regards to concessions. If there's any way to sort of, you know, maybe disaggregate or break down what sort of % of the renewal growth that you guys are able to sort of get each quarter comes from concession burn off versus sort of gross rent increases. Then maybe just a second part of there with regards to concessions, and I think you mentioned it for some specific markets, but just maybe across the portfolio, what are you offering today in terms of concessions, and how does that compare to, you know, for the same period a year ago?

Speaker #10: And if there's any way to sort of maybe disaggregate or break down what sort of percentage of the renewal growth that you guys are able to sort of get ?

Speaker #10: Each quarter comes from concession burn off versus sort of gross rent increases , and then maybe just a second parter there with regards to concessions .

Adam Kramer: Then maybe just a second part of there with regards to concessions, and I think you mentioned it for some specific markets, but just maybe across the portfolio, what are you offering today in terms of concessions, and how does that compare to, you know, for the same period a year ago?

Speaker #10: And I think you mentioned it for some specific markets, but just maybe across the portfolio, what are you offering today in terms of concessions, and how does that compare to the same period a year ago?

Speaker #11: Yeah , this is . Tim . So for the first part of your question , there's not a lot there . I mean , with our portfolio , we we don't use a ton of concessions .

Timothy Argo: Yeah. This is Tim. For the first part of your question, there's not a lot there. I mean, with our portfolio, we don't use a ton of concessions. We're mostly a net effective pricing. If you look at our financials, concessions represent about 0.6% of our net potential rent. For us, the, the burn off of concessions in our Same-Store renewal base is very minimal. You know, probably maybe 10 basis points or something like that. It's more impactful in our lease up properties. You know, we're getting 8%, 9%, 10% renewals on lease ups where there is some burn off concessions, but it's driving part of that. You can kind of distinguish between those two there.

Tim Argo: Yeah. This is Tim. For the first part of your question, there's not a lot there. I mean, with our portfolio, we don't use a ton of concessions. We're mostly a net effective pricing. If you look at our financials, concessions represent about 0.6% of our net potential rent. For us, the, the burn off of concessions in our Same-Store renewal base is very minimal. You know, probably maybe 10 basis points or something like that. It's more impactful in our lease up properties.

Speaker #11: We're , we're mostly a net effective pricing . If you look at our , our financials , concessions represent about 0.6% of our of our net potential rent .

Speaker #11: So for us , the , the , the burn off of concessions in our same store renewal base is very minimal . You know , probably maybe ten basis points or something like that .

Speaker #11: It's more impactful in our lease up properties . You know , we're getting eight , nine , 10% renewals on , on lease ups where there is some , some burn off concessions that , that is driving part of that .

Tim Argo: You know, we're getting 8%, 9%, 10% renewals on lease ups where there is some burn off concessions, but it's driving part of that. You can kind of distinguish between those two there.

Speaker #11: So you can kind of distinguish between , between those two . They're as , as far as the concession market across , across our portfolio , across our markets , I would say for Q1 , pretty consistent with what it was in Q4 .

Timothy Argo: As far as the concession market across our portfolio, across our markets, I would say for Q1, pretty consistent with what it was in Q4. You know, we're seeing 60% to 65% of our competitors offering some level of concession. Somewhere between 4 and 5 weeks is sort of the standard. so that's broadly across the portfolio. We have seen it tick down just ever so slightly as we got into April, where not only the percent of competitors offering concessions come down a little bit and then a little bit decrease in the overall average concession. You know, I think that's perhaps a sign of some of the momentum to come. You know, absorption was positive this quarter, so fewer lease up units out there.

Tim Argo: As far as the concession market across our portfolio, across our markets, I would say for Q1, pretty consistent with what it was in Q4. You know, we're seeing 60% to 65% of our competitors offering some level of concession. Somewhere between 4 and 5 weeks is sort of the standard. so that's broadly across the portfolio. We have seen it tick down just ever so slightly as we got into April, where not only the percent of competitors offering concessions come down a little bit and then a little bit decrease in the overall average concession.

Speaker #11: You know , we're seeing 60 , 65% of our of our competitors offering some level of concession somewhere between 4 and 5 weeks is sort of a standard .

Speaker #11: And so that's broadly across portfolio . We have seen it tick down just ever so slightly as we got into April , where not only the , the percent of competitors offering concessions come down a little bit .

Speaker #11: And then a little bit decrease in the overall average concession . So , you know , I think that's perhaps a sign of some of the momentum to come .

Tim Argo: You know, I think that's perhaps a sign of some of the momentum to come. You know, absorption was positive this quarter, so fewer lease up units out there.

Speaker #11: You know , absorption was positive this quarter . So fewer leases , fewer lease up units out there . So we are starting to see it take down just a little bit

Timothy Argo: We are starting to see it tick down just a little bit.

Tim Argo: We are starting to see it tick down just a little bit.

Speaker #4: Our next question will come from the line of Michael Goldsmith with UBS . Please go ahead

Operator 2: Our next question will come from the line of Michael Goldsmith with UBS. Please go ahead.

Operator: Our next question will come from the line of Michael Goldsmith with UBS. Please go ahead.

Speaker #12: Morning . This is Amy . I'm with Michael . We were wondering how much of an impact does hiring from New college grads have on your peak leasing season ?

Amy: Morning, this is Amy. I'm with Michael. We were wondering, how much of an impact does hiring from new college grads have on your peak leasing season? Do you tend to see more people trading up into MAA units, or are they more first-time renters?

[Analyst] (UBS): Morning, this is Amy. I'm with Michael. We were wondering, how much of an impact does hiring from new college grads have on your peak leasing season? Do you tend to see more people trading up into MAA units, or are they more first-time renters?

Speaker #12: Do you tend to see more people trading up into Ma units , or are they more first time renters

Speaker #11: It's it's pretty consistent throughout the year . You know , we've been looking at some of that or our younger age demographic with all the talk around some of the unemployment rates for , for that group in particular .

Timothy Argo: It's pretty consistent throughout the year. You know, we've been looking at some of that, our younger age demographic with all the talk around some of the unemployment rates for that group in particular. If we look at Q1, for example, about 20% of our move-ins are 25 or under in age, and that's been really consistent over the last several years. That hasn't really ticked up or down.

Tim Argo: It's pretty consistent throughout the year. You know, we've been looking at some of that, our younger age demographic with all the talk around some of the unemployment rates for that group in particular. If we look at Q1, for example, about 20% of our move-ins are 25 or under in age, and that's been really consistent over the last several years. That hasn't really ticked up or down.

Speaker #11: And so if we look at Q1 , for example , about 20% of our move ins are 25 or under in age . And that's been really consistent over the last several years .

Speaker #11: That hasn't really ticked up or down . And then we look at also , you know , to try to gauge some of that pressure or there more of , of our residents needing a guarantor indicating perhaps that their economic situation isn't as great .

A. Bradley Hill: Of our residents needing a guarantor indicating, you know, perhaps that their economic situation isn't as great, and that's actually come down a little bit. But I would say on average, it's about 20-ish percent of our move-ins are in that 25 age group or under, but we're not seeing really any pressure or any changes in that as of yet.

Tim Argo: Of our residents needing a guarantor indicating, you know, perhaps that their economic situation isn't as great, and that's actually come down a little bit. But I would say on average, it's about 20-ish percent of our move-ins are in that 25 age group or under, but we're not seeing really any pressure or any changes in that as of yet.

Speaker #11: And that's , that's actually come down a little bit . So , but I would say on average , it's about 20 ish percent of our move ins are in that 25 age group or under .

Speaker #11: But we're not seeing really any pressure or any changes in that as of yet.

Speaker #4: Our next question will come from the line of Jamie Feldman with Wells Fargo . Please go ahead

Operator 2: Our next question will come from the line of Jamie Feldman with Wells Fargo. Please go ahead.

Operator: Our next question will come from the line of Jamie Feldman with Wells Fargo. Please go ahead.

Speaker #13: Great . Thank you . I think you had mentioned pulling back on development starts this year . You know , obviously supplies come down in a pretty meaningful way .

Jamie Feldman: Great. Thank you. I think you had mentioned pulling back on development starts this year. You know, obviously, supply is coming down in a pretty meaningful way, and some of your competitors are actually talking about ramping up into 2028 and 2029. Can you talk about that decision and how we should be thinking about development going forward? Is it more, you know, project specific, or is there a bigger picture story we should be thinking about?

Speaker #13: And some of your competitors are actually talking about ramping up into 28 and 29 . Can you talk about that decision and how we should be thinking about development going forward ?

Speaker #13: Is it more , you know , project specific or is there a bigger picture story we should be thinking about

Speaker #2: Yeah , Jamie , this is Brad . Yeah . I mean , again , the development , you know , reduction for the year of $50 million really is just a couple months delay on average in terms of starts for deals .

A. Bradley Hill: Jamie, this is Brad. Again, the development reduction for the year of $50 million really is just a couple of months delay on average in terms of starts for deals, and that's really deal specific to your point. That does not signal in any way a change in our posture toward development. We still continue to believe in the merits of developing, in particular, the benefits of that for long-term TSR performance. You'll continue to see us focus on development. We own or control, I think 16 sites with approvals for over 4,000 units. That'll be a continued focus of us. We'll continue to focus on spending $300 to $400 million a year.

Brad Hill: Jamie, this is Brad. Again, the development reduction for the year of $50 million really is just a couple of months delay on average in terms of starts for deals, and that's really deal specific to your point. That does not signal in any way a change in our posture toward development. We still continue to believe in the merits of developing, in particular, the benefits of that for long-term TSR performance. You'll continue to see us focus on development. We own or control, I think 16 sites with approvals for over 4,000 units.

Speaker #2: And that's really deal specific to your point . That does not signal in any way a change in our posture toward development . We still continue to believe in the merits of developing and particular , the benefits of that for long term .

Speaker #2: TSR performance . So you'll continue to see us focus on development . I mean , we own or control . I think , 16 sites with approvals for over 4000 units .

Speaker #2: So that'll be a continued focus of us. You know, we'll continue to focus on spending $300 to $400 million a year.

Brad Hill: That'll be a continued focus of us. We'll continue to focus on spending $300 to $400 million a year.

Speaker #2: The start level A numbers for each year can vary a little bit , as it can be a little bit lumpy . You've got to go through the approval process , which , you know , can can take a little longer than you expect sometimes .

A. Bradley Hill: The start level numbers for each year can vary a little bit as it can be a little bit lumpy. You've got to go through the approval process, which, you know, can take a little longer than you expect sometimes. Our strategy and focus on development is the same as it has, and we'll continue to expand that pipeline to the, you know, $1 billion to 1.2 billion range that we've talked about previously.

Brad Hill: The start level numbers for each year can vary a little bit as it can be a little bit lumpy. You've got to go through the approval process, which, you know, can take a little longer than you expect sometimes. Our strategy and focus on development is the same as it has, and we'll continue to expand that pipeline to the, you know, $1 billion to 1.2 billion range that we've talked about previously.

Speaker #2: So, our strategy and focus on development is the same as it has been. And we will continue to expand that pipeline to the $1 billion, $1.2 billion range that we've talked about previously.

Speaker #4: Our next question will come from the line of Steve Sakwa with Evercore ISI . Please go ahead

Operator 2: Our next question will come from the line of Steve Sakwa with Evercore ISI. Please go ahead.

Operator: Our next question will come from the line of Steve Sakwa with Evercore ISI. Please go ahead.

Speaker #14: Yeah , thanks . I guess kind of a big picture question . If I told you that you could double the size of your portfolio today , I guess , what are the pluses and minuses of managing a substantially large or larger portfolio than what you currently have ?

Steve Sakwa: Yeah, thanks. I guess kind of a big picture question. If, if, I told you that you could double the size of your portfolio today, I guess what are the pluses and minuses of managing a substantially large or larger portfolio than what you currently have? Is the data flow that much better that gives you better insight on pricing? Are there just more operational challenges? Like, you know, how do you sort of think about size and, you know, whether you need to be, you know, much bigger than you currently are?

Speaker #14: Is the data flow that much better that gives you better insight on pricing ? Are there just more operational challenges like how do you sort of think about size and , and whether you need to be , you know , much bigger than you currently are

Speaker #2: Well , you know , I think , you know , certainly size isn't everything . You know , we have been through obviously two significant events in our recent history as an organization .

A. Bradley Hill: Well, you know, I think, you know, certainly size isn't everything. You know, we have been through obviously two significant events in our recent history as an organization, and those events are very difficult to do and take a lot of time, and there's risk associated with them. There certainly could be a lot of upside if they're done right, and the cultures align well between the organizations. You know, I would say, at the scale that we are today, you know, to double our portfolio size, you know, I wouldn't think there's a material improvement in information flow, data flow, and things of that nature that you mentioned. Cost of capital is probably very similar.

Brad Hill: Well, you know, I think, you know, certainly size isn't everything. You know, we have been through obviously two significant events in our recent history as an organization, and those events are very difficult to do and take a lot of time, and there's risk associated with them. There certainly could be a lot of upside if they're done right, and the cultures align well between the organizations.

Speaker #2: And those events are very , very difficult to , to do . And take a lot of time . And there's risk associated with them .

Speaker #2: But there certainly could be a lot of upside if they're if they're done right . And the cultures align well between the organizations , you know , I would say at the scale that we are today .

Brad Hill: You know, I would say, at the scale that we are today, you know, to double our portfolio size, you know, I wouldn't think there's a material improvement in information flow, data flow, and things of that nature that you mentioned. Cost of capital is probably very similar.

Speaker #2: You know , to double our portfolio size , you know , I wouldn't think there's a material improvement in information flow , data flow and things of that nature that you mentioned .

Speaker #2: Cost of capital is probably very similar . You know , it really is going to depend on , I would say , what we can get operational efficiency wise .

A. Bradley Hill: you know, really is gonna depend on, I would say, what we can get, operational efficiency-wise. you know, some of the things that we're doing on the operating side from centralization and specialization and how we're approaching, you know, podding properties and things of that nature. Having scale near to one another within a particular market is very meaningful in that process. Certainly, could see some ability to drive, you know, some level of operating efficiencies, depending on where the properties are located.

Brad Hill: you know, really is gonna depend on, I would say, what we can get, operational efficiency-wise. you know, some of the things that we're doing on the operating side from centralization and specialization and how we're approaching, you know, podding properties and things of that nature. Having scale near to one another within a particular market is very meaningful in that process. Certainly, could see some ability to drive, you know, some level of operating efficiencies, depending on where the properties are located.

Speaker #2: You know , some of the things that we're doing on the operating side from centralization and specialisation and how we're approaching , you know , porting properties and things of that nature , having scale near to one another within a particular market is very meaningful in that process .

Speaker #2: So certainly could see some ability to drive , you know , some level of operating , operating efficiencies depending on where the properties are located

Speaker #4: Our next question will come from the line of Rich Anderson with Cantor Fitzgerald . Please go ahead .

Operator 2: Our next question will come from the line of Richard Anderson with Cantor Fitzgerald. Please go ahead.

Operator: Our next question will come from the line of Richard Anderson with Cantor Fitzgerald. Please go ahead.

Speaker #15: Thanks . Good morning So about a year ago , Brad , we we had a dinner with the group and there was some at least some indication from my perspective that this time , you know , a year later , we would be talking about a lot more in the way of , you know , stabilized new lease rate growth and so on .

Richard Anderson: Thanks. Good morning. About a year ago, Brad, we had a dinner with the group, and there was some at least some indication from my perspective that this time, you know, a year later, we would be talking about a lot more in the way of, you know, stabilized new lease rate growth and so on. Obviously, it hasn't quite happened yet. I'm curious, in your mind, taking over CEO around that time, 13 months ago, are you surprised by the tail of supply impacting that line item in particular? Or is everything kind of lining up the way you thought? We all know the biblical nature of the supply that came online in your markets over the past couple of years.

Speaker #15: And , you know , obviously it hasn't quite happened yet . I'm curious , you know , in your mind , you know , taking over CEO around that time , 13 months ago .

Speaker #15: Are you surprised by the tale of supply impacting that line item in particular , or is everything kind of lining up the way you thought ?

Richard Anderson: Or is everything kind of lining up the way you thought? We all know the biblical nature of the supply that came online in your markets over the past couple of years.

Speaker #15: I , I , we , we all know the biblical nature of the supply that came online in your markets over the past couple of years I'm just I'm just curious if , if , if all this is coming as more of a surprise and , and not necessarily in alignment with past cycles of supply that you guys have been through .

Richard Anderson: I'm just curious if all this is coming as more of a surprise and not necessarily in alignment with past cycles of supply that you guys have been through. I just wanted to take your temperature on that topic. Thanks.

Speaker #15: I just wanted to get your take your temperature on that topic . Thanks .

Speaker #2: Yeah . No , thanks Yeah . I recall our dinner and certainly at that time , you know , believed that we would certainly see better improvement on new lease rate side .

A. Bradley Hill: Yeah. No, no, thanks. I recall our dinner, and certainly at that time, you know, believed that we would certainly see better improvement on new lease rate side, excuse me, over the past year, which is, you know, what our expectations have been as related to our forecast for, you know, last year and going into this year. I think it's also, and you mentioned the biblical size of supply, but I do think it's important to put that in perspective. You know, in a 3-year period, we had 5 years worth of supply delivered into our markets. So, you know, there is a level of lingering impact associated with that supply. The good news is, though, that absorption is happening. Market level occupancies are improving.

Brad Hill: Yeah. No, no, thanks. I recall our dinner, and certainly at that time, you know, believed that we would certainly see better improvement on new lease rate side, excuse me, over the past year, which is, you know, what our expectations have been as related to our forecast for, you know, last year and going into this year. I think it's also, and you mentioned the biblical size of supply, but I do think it's important to put that in perspective. You know, in a 3-year period, we had 5 years worth of supply delivered into our markets.

Speaker #2: Excuse me , over the past year , which is , you know , what our expectations have been as related to our forecast for , you know , last year and going into this year .

Speaker #2: And I think it's also you mentioned the biblical size of supply , but I do think it's important to put that in perspective .

Speaker #2: You know , in a three year period , we had five years worth of supply delivered into our markets . And so , you know , there is a level of lingering impact associated with that supply .

Brad Hill: So, you know, there is a level of lingering impact associated with that supply. The good news is, though, that absorption is happening. Market level occupancies are improving.

Speaker #2: The good news is , though , that absorption is happening market level occupancies are improving . You know , when we had that dinner , I didn't think that , you know , new lease rates would would take as long as they have to , to see improvement that we've seen .

A. Bradley Hill: You know, when we had that dinner, I didn't think that, you know, new lease rates would take as long as they have to see improvement that we've seen. The good news is we are seeing improvement. The other positives are that the demand within our region continues to hold in there quite well, outperforming other regions of the country, sometimes by a factor of two to three. The other good news is that the supply pipeline is significantly declining. If you look at the size of what's being delivered in our region this year, it's down 40% from last year.

Brad Hill: You know, when we had that dinner, I didn't think that, you know, new lease rates would take as long as they have to see improvement that we've seen. The good news is we are seeing improvement. The other positives are that the demand within our region continues to hold in there quite well, outperforming other regions of the country, sometimes by a factor of two to three. The other good news is that the supply pipeline is significantly declining. If you look at the size of what's being delivered in our region this year, it's down 40% from last year.

Speaker #2: But the good news is we are seeing improvement. The other positives are that the demand within our region continues to hold in there quite well.

Speaker #2: Perform outperforming other regions of the country . Sometimes by a factor of 2 to 3 . The other good news is that the supply pipeline is significantly declining .

Speaker #2: If you look at the size of what's being delivered in our region this year , it's down 40% from last year . So while it is taking a little bit longer , if you keep in perspective , just the size of the magnitude of the decline that we're seeing in supply in our region of the country , which is declining to a larger degree than it is other regions of the country balanced with the fact that demand continues to be resilient .

A. Bradley Hill: While it is taking a little bit longer, if you keep in perspective just the size of the and the magnitude of the decline that we're seeing in supply in our region of the country, which is declining to a larger degree than it is other regions of the country, balanced with the fact that demand continues to be resilient. You know, we're pretty excited about what the trajectory looks like from here. Yes, last year I would've hoped that it would have improved a little bit quicker, but that's not where we are. Certainly, I think as we look forward based on supply and demand fundamentals, we're pretty excited.

Brad Hill: While it is taking a little bit longer, if you keep in perspective just the size of the and the magnitude of the decline that we're seeing in supply in our region of the country, which is declining to a larger degree than it is other regions of the country, balanced with the fact that demand continues to be resilient. You know, we're pretty excited about what the trajectory looks like from here. Yes, last year I would've hoped that it would have improved a little bit quicker, but that's not where we are.

Speaker #2: You know , we're pretty excited about what the trajectory looks like for here . From here . Yes . Last year I would have hoped that it would have improved a little bit quicker , but that's not where we are .

Speaker #2: And certainly I think as we look forward based on supply and demand fundamentals , we're pretty excited .

Brad Hill: Certainly, I think as we look forward based on supply and demand fundamentals, we're pretty excited.

Speaker #4: Our next question comes from the line of Mason Gail with Baird . Please go ahead

Operator 2: Our next question comes from the line of Mason Gale with Baird. Please go ahead.

Operator: Our next question comes from the line of Mason Gale with Baird. Please go ahead.

Speaker #16: Hey , thanks . Good morning everyone . Do you expect to continue buying additional land parcels for the balance of the year

Mason Gale: Hey, thanks. Good morning, everyone. Do you expect to continue buying additional land parcels for the balance of the year?

Mason Guell: Hey, thanks. Good morning, everyone. Do you expect to continue buying additional land parcels for the balance of the year?

Speaker #2: Well , you know , this is Brad . You know , I think this ends . We will likely have additional land parcels that that we purchase later in the year .

A. Bradley Hill: Well, you know, this is Brad. You know, it depends. We will likely have additional land parcels that we purchase later in the year. The way that we are approaching buying land at this point is we are not looking to land bank various sites. You know, we do not want to buy land that is speculative. We wanna buy land that we have a clear and near-term path to being able to put that land into production. You could, you know, based on timing, you could see us buy a piece of land at some point this year that maybe starts construction next year. Certainly not with the intent to buy it and hold it for, you know, a few years before we're able to start construction on it.

Brad Hill: Well, you know, this is Brad. You know, it depends. We will likely have additional land parcels that we purchase later in the year. The way that we are approaching buying land at this point is we are not looking to land bank various sites. You know, we do not want to buy land that is speculative. We wanna buy land that we have a clear and near-term path to being able to put that land into production. You could, you know, based on timing, you could see us buy a piece of land at some point this year that maybe starts construction next year.

Speaker #2: But but the way that we are approaching buying land at this point is we are not looking to land bank various sites . You know , we're we do not want to buy land that is speculative .

Speaker #2: We want to buy land that we have a clear and near-term path to being able to put that land into production . So you could , you know , based on timing , you could see us buy a piece of land at some point this year that maybe starts construction next year , but certainly not with the intent to buy it and hold it for a few years before we're able to start construction on it .

Brad Hill: Certainly not with the intent to buy it and hold it for, you know, a few years before we're able to start construction on it.

Speaker #2: That's not what we're looking to do. We want to keep the balance sheet very efficient and be able to put land into production pretty quickly after we buy it.

A. Bradley Hill: That's not what we're looking to do. We wanna keep the balance sheet very efficient, and be able to put land into production pretty quickly after we buy it.

Brad Hill: That's not what we're looking to do. We wanna keep the balance sheet very efficient, and be able to put land into production pretty quickly after we buy it.

Speaker #4: Our next question comes from the line of Julien Blouin with Goldman Sachs . Please go ahead

Operator 2: Our next question comes from the line of Julien Blouin with Goldman Sachs. Please go ahead.

Operator: Our next question comes from the line of Julien Blouin with Goldman Sachs. Please go ahead.

Speaker #17: Yeah . Thank you . Thank you . Yeah . Thank you for taking my question . Maybe following on from Steve's question , I mean , you guys are probably the best authorities in the space on public to public apartment deals .

Julien Blouin: Yeah. Thank you.

Operator 2: Julian.

Operator: Julian.

Julien Blouin: Thank you. Yeah, thank you for taking my question. Following on from Steve Sakwa's question, I mean, you guys are probably the best authorities in the space on public-to-public apartment deals, just given the Post Properties and Colonial Properties Trust deals. You know, obviously there's the initial G&A and overhead benefit that can be realized. I guess, you mentioned the podding benefit. How long does that sort of take to realize? If we think about what's different today versus when you did the Post Properties and Colonial Properties Trust transactions, are there any additional benefits today, whether it's on, I don't know, the technology front, the AI front, you know, Wi-Fi rollout, and scale with vendors that would maybe make a deal make even more sense today?

Speaker #17: Just given the post and colonial deals . You know , obviously there's the initial DNA and overhead benefit that can be realized . But I guess you mentioned the potting benefit .

Speaker #17: How long does that sort of take to realize ? And then if we think about what's different today versus when you did the post and colonial transactions , are there any additional benefits today , whether it's on , I don't know , the technology front , the AI front , you know , Wi-Fi rollout and scale with vendors that would maybe make a deal , make even more sense today

Julien Blouin: If we think about what's different today versus when you did the Post Properties and Colonial Properties Trust transactions, are there any additional benefits today, whether it's on, I don't know, the technology front, the AI front, you know, Wi-Fi rollout, and scale with vendors that would maybe make a deal make even more sense today?

A. Bradley Hill: Hey, Julian, this is Brad. You know, I think in terms of podding, you know, that's more related to the quality of the property managers that you have and just opportunities that present themselves in terms of how quickly those can manifest themselves. Those can be relatively quick endeavors. You gotta make sure you have the right people. As you know, You know, in any merger, this is a very people-intensive business. You know, they can quickly determine whether or not you have success or not at a property level. You've got to be really careful with what you're doing there. I'm sorry, the second part of his question.

Brad Hill: Hey, Julian, this is Brad. You know, I think in terms of podding, you know, that's more related to the quality of the property managers that you have and just opportunities that present themselves in terms of how quickly those can manifest themselves. Those can be relatively quick endeavors. You gotta make sure you have the right people. As you know, You know, in any merger, this is a very people-intensive business. You know, they can quickly determine whether or not you have success or not at a property level.

Speaker #2: Julien , this is Brad . You know , I think in terms of potting , you know , that's that's more related to the quality of the property managers that you have and just opportunities that present themselves in terms of how quickly those can manifest themselves .

Speaker #2: Those can be relatively quick endeavors , but you've to make sure you have the right , the right people . As you know , this is a very , you know , in any merger , this is a very people intensive business .

Speaker #2: And so , you know , they can quickly determine whether or not you have success or not at a property level . So you've got to be really careful with what what you're doing there .

Brad Hill: You've got to be really careful with what you're doing there. I'm sorry, the second part of his question.

Speaker #2: And I'm sorry . The second part of this question .

Julien Blouin: Any additional benefits weren't there.

Speaker #11: Any , any additional benefits that weren't there ?

Julien Blouin: Any additional benefits weren't there.

Speaker #2: Yeah . In terms of the other benefits , I think that are different than when we executed the post in colonial merger is is on the technology front .

A. Bradley Hill: Yeah. In terms of the other benefits, I think, that are different than when we executed the Post and Colonial merger is on the technology front like you talk about. I think, you know, the cost of technology today continues to increase. I also think the ability to spread that cost across, you know, obviously a bigger footprint, a bigger platform. You know, one of the things that we've been focused on as an organization is continuing to improve our platform capabilities and be able to drive more out of our portfolio than what others are able to do.

Brad Hill: Yeah. In terms of the other benefits, I think, that are different than when we executed the Post and Colonial merger is on the technology front like you talk about. I think, you know, the cost of technology today continues to increase. I also think the ability to spread that cost across, you know, obviously a bigger footprint, a bigger platform. You know, one of the things that we've been focused on as an organization is continuing to improve our platform capabilities and be able to drive more out of our portfolio than what others are able to do.

Speaker #2: Like you talk about , I think , you know , the cost of technology today continues to increase . But I also think the ability spread that cost across , you know , a bigger footprint , a bigger platform .

Speaker #2: You know, one of the things that we've been focused on as an organization is continuing to improve our platform capabilities and be able to drive more out of our portfolio than what others are able to do.

Speaker #2: And part of that is the technology . Part of that is the centralization of specialization that we have and that we're focused on , so that the marginal G and A cost associated in technology cost associated with adding additional units is less .

A. Bradley Hill: Part of that is the technology, part of that is the centralization and specialization that we have, and that we're focused on so that the marginal G&A cost associated and technology cost associated with adding additional units is less. I do think that's a difference today versus what it was, you know, ten or so years ago when we've gone through mergers.

Brad Hill: Part of that is the technology, part of that is the centralization and specialization that we have, and that we're focused on so that the marginal G&A cost associated and technology cost associated with adding additional units is less. I do think that's a difference today versus what it was, you know, ten or so years ago when we've gone through mergers.

Speaker #2: So I do think that's a different today . A difference today versus what it was , you know , ten , ten or so years ago when we've gone through mergers

Speaker #4: Our next question will come from the line of Alex Kim with Zelman and Associates . Please go ahead

Operator 2: Our next question will come from the line of Alex Kim with Zelman & Associates. Please go ahead.

Operator: Our next question will come from the line of Alex Kim with Zelman & Associates. Please go ahead.

Speaker #18: Hey . Morning . Thanks for taking my question . I wanted to ask about how Lisa Velocity has trended so far year to date .

Alex Kim: Hey. Morning. Thanks for taking my question. I wanted to ask about how lease-up velocity has trended so far year to date and you know kind of fitting that into the context of acquiring projects that are in lease-up. You know, is that still a strategy that you maintain on a go-forward basis? Thanks.

Speaker #18: And , you know , kind of fitting that into the context of acquiring projects that are in lease up , you know , is that still a strategy that you maintain on a go forward basis ?

Speaker #18: Thanks

Speaker #11: Galaxies . Pam . I'll answer the first part of that question . We have seen the lease up velocity pick up , particularly as we got into late Q1 .

Timothy Argo: Yeah, Alex, this is Tim. I'll answer the first part of that question. We have seen the lease-up velocity tick up, particularly as we got into late Q1 and into April. You know, obviously it's a little bit slower in Q4 and Q1, just with traffic patterns and seasonal patterns. If we look at April, for example, the five properties that are in our lease-up bucket averaged about 23 move-ins on average in the month of April. We're starting to see that momentum pick up. Got a really good lead volume. See, you know, we're not seeing things get slower. We're not seeing concessions go up or anything like that. We're starting to see the momentum there.

Tim Argo: Yeah, Alex, this is Tim. I'll answer the first part of that question. We have seen the lease-up velocity tick up, particularly as we got into late Q1 and into April. You know, obviously it's a little bit slower in Q4 and Q1, just with traffic patterns and seasonal patterns. If we look at April, for example, the five properties that are in our lease-up bucket averaged about 23 move-ins on average in the month of April. We're starting to see that momentum pick up. Got a really good lead volume. See, you know, we're not seeing things get slower.

Speaker #11: And and into April . You know , obviously it's a little bit slower in Q1 , Q4 , and Q1 just with with traffic patterns and seasonal patterns .

Speaker #11: But if we look at April , for example , the , the five properties that are in our lease up bucket averaged about 23 move ins in the on average in the month of April .

Speaker #11: So we're starting to see that momentum pick up . Got really good lead volume . We're starting to see , you know , we're not seeing things get slower or we're not seeing concessions go up or anything like that .

Tim Argo: We're not seeing concessions go up or anything like that. We're starting to see the momentum there.

Speaker #11: We're starting to see the momentum there . And I think as we get into the spring and summer , much like we've talked about with our same store portfolio , we would expect to continue to see some momentum in that group

A. Bradley Hill: I think as we get into the spring and summer, much like we've talked about with our same-store portfolio, we would expect to continue to see some momentum in that group. In terms of acquisitions, I think you asked if we're focused on buying properties and lease-up. I mean, you know, I think at this point, you know, the best use of our capital is not acquiring, so we're not active in that market today. We continue to evaluate projects. I would also say we haven't seen as many lease-up trades or lease-ups coming to market to trade as we have historically.

Tim Argo: I think as we get into the spring and summer, much like we've talked about with our same-store portfolio, we would expect to continue to see some momentum in that group.

Speaker #2: In terms of acquisitions , I think you asked if we're focused on buying properties and lease up . I mean , you know , I think at this point , you know , the best use of our capital is not acquiring .

Brad Hill: In terms of acquisitions, I think you asked if we're focused on buying properties and lease-up. I mean, you know, I think at this point, you know, the best use of our capital is not acquiring, so we're not active in that market today. We continue to evaluate projects. I would also say we haven't seen as many lease-up trades or lease-ups coming to market to trade as we have historically.

Speaker #2: So we're not active in that market today . We continue to evaluate projects . I would also say we haven't seen as many lease up trades or lease ups coming to market to trade as we have historically .

Speaker #2: I think the , you know , if a seller is bringing a property to market today , they want it as leased up and occupied as they can get so that there's less risk , you know , out there for the buyer so that they can get better pricing at the moment .

A. Bradley Hill: I think the, you know, if a seller is bringing a property to market today, they want it as leased up and occupied as they can get, so that there's less risk, you know, out there for the buyer so that they can get better pricing at the moment. You know, we'll continue to look at lease-ups as they come to market. If we find an opportunity that makes sense, we certainly wouldn't for the right price, we wouldn't hesitate to execute there, but we're just not seeing a lot of opportunities in that front that makes sense today.

Brad Hill: I think the, you know, if a seller is bringing a property to market today, they want it as leased up and occupied as they can get, so that there's less risk, you know, out there for the buyer so that they can get better pricing at the moment. You know, we'll continue to look at lease-ups as they come to market. If we find an opportunity that makes sense, we certainly wouldn't for the right price, we wouldn't hesitate to execute there, but we're just not seeing a lot of opportunities in that front that makes sense today.

Speaker #2: So we'll continue to look at lease ups as they as they come to market . And if we find an opportunity that makes sense , we certainly wouldn't for the right price .

Speaker #2: We wouldn't hesitate to execute there . But we're just not seeing a lot of opportunities in that front . That makes sense today .

Speaker #4: Our next question will come from the line of Ann Chan with Green Street . Please go ahead .

Operator 2: Our next question will come from the line of Ann Chan with Green Street. Please go ahead.

Operator: Our next question will come from the line of Ann Chan with Green Street. Please go ahead.

Speaker #19: Hi . Thanks for taking my question . So going back to other income , were there any unusual or non-recurring items that cause a drag or a boost on other income in first quarter and , and related .

Ann Chan: Hi, thanks for taking my question. So going back to other income, were there any unusual or non-recurring items that caused a drag or a boost on other income in Q1? Related, when do you expect the benefit from the delayed Wi-Fi rollout in late 2025 to start flowing through 2026, if not already?

Speaker #19: When do you expect the benefit from the delayed Wi-Fi rollout? In late '25 to start flowing into '26, if not already.

Speaker #11: And just to confirm , are you are you referring to same store other income ?

Timothy Argo: Ann, just to confirm, are you referring to Same-Store other income?

Clay Holder: Ann, just to confirm, are you referring to Same-Store other income?

Speaker #19: Correct .

Ann Chan: Correct.

Speaker #11: Yeah . So in Q1 . This is clay by the way . So in Q1 , you know , we have seen the to your point , we have seen the continued rollout of Wi-Fi .

A. Clay Holder: Yeah. In Q1, this is Clay, by the way. In Q1, you know, to your point, we have seen the continued rollout of Wi-Fi. We saw a little bit there, but not much, not really driving that in the quarter itself. You know, where we would expect to begin to see that benefit showing itself in the numbers would be as we move into the spring and summer leasing seasons and we start having those leases turn and that would be the time that we would, you know, push the Wi-Fi revenue to the residents and along with expense that we have for that as well.

Clay Holder: Yeah. In Q1, this is Clay, by the way. In Q1, you know, to your point, we have seen the continued rollout of Wi-Fi. We saw a little bit there, but not much, not really driving that in the quarter itself. You know, where we would expect to begin to see that benefit showing itself in the numbers would be as we move into the spring and summer leasing seasons and we start having those leases turn and that would be the time that we would, you know, push the Wi-Fi revenue to the residents and along with expense that we have for that as well.

Speaker #11: We saw a little bit there , but not not much , not really driving that in the quarter itself . You know , what we would expect to begin to really begin to see that benefit showing itself in the numbers would be as we move into the spring and summer leasing seasons , and we start having those leases turn .

Speaker #11: And that would be the time that we would , you know , push the the Wi-Fi revenue to the residents . And along with expense that we have for that as well .

Speaker #11: So that should come towards in the middle and towards the light . The latter part of the year . Yeah . And I'll just add one point to that is Tim .

Timothy Argo: That should come towards, you know, in the middle and towards the latter part of the year. Yeah, I'll just add one point to that as Tim. We've, you know, we're expecting somewhere in the neighborhood of $3 million or so of revenue in 2026 related to those Wi-Fi projects, which is certainly backloaded as Clay mentioned. Most of those projects got completed late Q4, early Q1, and we price those out as the leases expire and the units turn. Expect a lot more impact from those as we get through the year, and then it'll compound certainly in 2027 and beyond.

Clay Holder: That should come towards, you know, in the middle and towards the latter part of the year.

Tim Argo: Yeah, I'll just add one point to that as Tim. We've, you know, we're expecting somewhere in the neighborhood of $3 million or so of revenue in 2026 related to those Wi-Fi projects, which is certainly backloaded as Clay mentioned. Most of those projects got completed late Q4, early Q1, and we price those out as the leases expire and the units turn. Expect a lot more impact from those as we get through the year, and then it'll compound certainly in 2027 and beyond.

Speaker #2: We've .

Speaker #11: You know , we're expecting somewhere in the neighborhood .

Speaker #2: Of 3 million or so of revenue in 2026 related to those Wi-Fi projects , which certainly back loaded as Clay mentioned , most of those projects got completed late Q4 , early Q1 , and we we price those out as , as the leases expire in the in its term .

Speaker #2: So spec a lot more impact from those as we get through the year . And then it compound certainly in 2027 and beyond

Speaker #4: Our next question will come from the line of Nick Yulico , Scotiabank . Please go ahead .

Operator 2: Our next question will come from the line of Nicholas Yulico with Scotiabank. Please go ahead.

Operator: Our next question will come from the line of Nicholas Yulico with Scotiabank. Please go ahead.

Speaker #20: Hi . Good morning . This is Elmer Chang . On with Nick . I just wanted to go back on the concession topic and just ask , how is how is concession burn off trending in some of your maybe underperforming markets of late ?

Elmer Chang: Hi, good morning. This is Elmer Chang on with Nick. I just wanted to go back on the concession topic and just ask, how is concession burn-off trending in some of your maybe underperforming markets of late, like Charlotte, Austin, Nashville, et cetera? When do you expect you'll reach a normalized level on concessions in those markets this year? I know you mentioned concession usage ticking down through April, now you expect new lease rates will improve throughout the year. I was just wondering whether that outlook is mostly driven by your stronger markets like Atlanta, Dallas, Orlando. Thank you.

Speaker #20: Like Charlotte Austin , Nashville , etc. ? And when do you expect you'll reach a normalized level of concessions in those markets this year ?

Speaker #20: I know you mentioned concessions . You should usage taking down through April and that you expect new lease rates will improve throughout the year .

Elmer Chang: I know you mentioned concession usage ticking down through April, now you expect new lease rates will improve throughout the year. I was just wondering whether that outlook is mostly driven by your stronger markets like Atlanta, Dallas, Orlando. Thank you.

Speaker #20: But I was just wondering whether that outlook is mostly driven by your stronger and stronger markets like Atlanta , Dallas , Orlando Thank you .

Speaker #2: Yeah , we're this is Tam . I mean , we we have started to see in some of those weaker markets concessions come down a little bit .

Timothy Argo: Yeah. Elmer, this is Tim. I mean, we have started to see in some of those weaker markets, concessions come down a little bit. I've talked a few times about some of the more urban submarkets where, and that have a lot of lease-ups where they were averaging closer to 3 months. I would say now that's more in the 8 to 10-week type of concessionary environment. Come down a little bit there. Market like Austin, we have started to see it come down a little bit. You know, we were pushing, you know, across the entire market, close to almost 2 months, broadly, and that started to tick down slowly. We're particularly seeing better performance in the southern part of Austin.

Tim Argo: Yeah. Elmer, this is Tim. I mean, we have started to see in some of those weaker markets, concessions come down a little bit. I've talked a few times about some of the more urban submarkets where, and that have a lot of lease-ups where they were averaging closer to 3 months. I would say now that's more in the 8 to 10-week type of concessionary environment. Come down a little bit there. Market like Austin, we have started to see it come down a little bit.

Speaker #2: I've talked a few times about some of the more urban submarkets where . And that have a lot of lease ups where they were averaging closer to three months .

Speaker #2: And I would say now that's more in the 8 to 10 week type of concession environment . So come down a little bit there .

Speaker #2: Market like Austin , we have started to see it come down a little bit . You know , we were pushing , you know , across the entire market close to almost two months broadly .

Tim Argo: You know, we were pushing, you know, across the entire market, close to almost 2 months, broadly, and that started to tick down slowly. We're particularly seeing better performance in the southern part of Austin.

Speaker #2: And that started to tick down slowly , but particularly seeing better performance in in the southern part of Austin , northern Austin , you know , Georgetown and in that area , still seeing a lot of pressure , not seeing much relief there Phoenix is probably another one where we started to see concessions come down a little bit .

Timothy Argo: Northern Austin, you know, Georgetown and that area is still seeing a lot of pressure, not seeing much relief there. Phoenix is probably another one where we've started to see concessions come down a little bit. You know, occupancy in that market stabilized, at least for us, over the last couple of quarters, and now starting to see still underperforming broadly, but starting to see some good momentum out of Phoenix. You mentioned Charlotte. That's one that's, you know, it's still right in the mix of it. It got double-digit % of inventory delivered over the last couple of years. I think, you know, that one's gonna be a struggle, I think, through 2026, and that one's probably more of a 2027 recovery story in Charlotte. Feel great about that market long term.

Tim Argo: Northern Austin, you know, Georgetown and that area is still seeing a lot of pressure, not seeing much relief there. Phoenix is probably another one where we've started to see concessions come down a little bit. You know, occupancy in that market stabilized, at least for us, over the last couple of quarters, and now starting to see still underperforming broadly, but starting to see some good momentum out of Phoenix. You mentioned Charlotte.

Speaker #2: You know , occupancy in that market stabilized , at least for us over the last couple of quarters . And now starting to see still underperforming broadly .

Speaker #2: But starting to see some some good momentum out of Phoenix . You mentioned Charlotte . That's one that's you know , it's still right in the in the mix of it .

Tim Argo: That's one that's, you know, it's still right in the mix of it. It got double-digit % of inventory delivered over the last couple of years. I think, you know, that one's gonna be a struggle, I think, through 2026, and that one's probably more of a 2027 recovery story in Charlotte. Feel great about that market long term.

Speaker #2: It it got double digit percent of inventory delivered over the last couple of years . I think , you know , that one's going to be a struggle .

Speaker #2: I think through 2026 . And that one's probably more of a 2027 recovery story in Charlotte . But feel great about that market long term .

Speaker #2: Tons of demand , tons of jobs coming there . But just a whole lot of supply there right .

Timothy Argo: Tons of demand, tons of jobs coming there, but just whole lot of supply there right now.

Tim Argo: Tons of demand, tons of jobs coming there, but just whole lot of supply there right now.

Speaker #4: And we have no further questions . I'll return the call to Mar for closing comments

Operator 2: We have no further questions. I'll return the call to MAA for closing comments.

Operator: We have no further questions. I'll return the call to MAA for closing comments.

Speaker #2: All right . We appreciate everyone joining . We'll see you soon . In various conferences . Thank you .

A. Bradley Hill: All right. We appreciate everyone joining. We'll see you soon at, in various conferences. Thank you.

Brad Hill: All right. We appreciate everyone joining. We'll see you soon at, in various conferences. Thank you.

Operator 2: This concludes today's program. Thank you for your participation. You may disconnect at any time.

Operator: This concludes today's program. Thank you for your participation. You may disconnect at any time.

Q1 2026 Mid America Apartment Communities Inc Earnings Call

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