Albert Anthony is the pen name of a Croatian-American business author who is a contributing analyst on investor platform & financial media site Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is author of a new book on Amazon called Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition).The author's background as a business information systems analyst also included the IT department at top 10 financial firm Charles Schwab, where he ...

Real Estate Portfolio - As of September 30, 2025, the company owned and operated 115 multifamily apartment properties with a total of 33,818 units[114] - The company sold a multifamily apartment community in Birmingham, AL for a gross sales price of $111.0 million on February 14, 2025[119] - The company acquired three multifamily apartment communities in Orlando, FL for a total of $155.0 million, increasing its unit count in the area from 617 to 1,260[121] - The company is developing a multifamily project with 318 units just outside Indianapolis, IN, with a committed investment of $20.0 million[125] - As of September 30, 2025, the company owned and consolidated 115 multifamily apartment properties, with 105 in the Same-Store Portfolio[138] Financial Performance - Rental and other property revenue for the three months ended September 30, 2025, was $166.888 million, a 4.4% increase from $159.860 million in the same period of 2024[139] - Net operating income for the Same-Store Portfolio increased by 2.7% to $95.390 million compared to $92.840 million in the prior year[139] - Net income available to common shares for the three months ended September 30, 2025, was $6.893 million, a decrease of 44.3% from $12.365 million in the same period of 2024[139] - Funds from Operations (FFO) for the nine months ended September 30, 2025, was $206.5 million, representing an increase from $195.8 million in the same period of 2024[165] - Core Funds from Operations (CFFO) for the nine months ended September 30, 2025, was $200.9 million, compared to $191.9 million for the same period in 2024[165] Revenue and Expenses - Average effective monthly rent per unit in the Same-Store Portfolio increased by 0.6% to $1,581 from $1,571 in the same period of 2024[139] - Property operating expenses rose by $1.2 million to $61.7 million for the three months ended September 30, 2025, primarily due to a $1.6 million increase in non same-store operating expenses[142] - Depreciation and amortization expense increased by $6.5 million to $61.7 million for the three months ended September 30, 2025, attributed to capital expenditures related to the Value Add Initiative and higher intangible asset amortization from recent acquisitions[144] - Interest expense increased by $2.1 million to $20.5 million for the three months ended September 30, 2025, driven by a higher average outstanding consolidated debt balance and an increase in the effective interest rate to 4.3%[146] Impairment and Gains - The company recognized a loss on impairment of $12.8 million on a property held for sale in Denver, CO, with expectations for the sale to close in 2026[120] - For the nine months ended September 30, 2025, the company recorded an impairment loss of $12.8 million on one property held for sale, partially offset by a gain of $1.5 million from the sale of a multi-family property[159] - The loss on impairment of real estate assets for the three months ended September 30, 2025, was $12.8 million, compared to a gain of $688,000 in 2024[170] Cash Flow and Liquidity - Cash flow provided by operating activities for the nine months ended September 30, 2025, was $221.96 million, up from $196.32 million in 2024, reflecting a $25.6 million increase[178] - Cash and cash equivalents, and restricted cash at the end of Q3 2025 were approximately $50.9 million, compared to $48.2 million at the end of Q3 2024[178] - The company maintained liquidity with cash and cash equivalents of $23.3 million as of September 30, 2025, and plans to meet liquidity requirements through various financing arrangements[177] Financing and Credit Arrangements - The Fifth Amended and Restated Credit Agreement increased the maximum principal amount of the unsecured revolver to $750 million, an increase of $250 million from the previous agreement[131] - The company has the option to increase borrowings under the Fifth Restated Credit Agreement to up to $2.0 billion, subject to certain conditions[132] Renovations and Initiatives - The company completed renovations on 788 units during the three months ended September 30, 2025, achieving a return on investment of 16.2%[130] - The company completed renovations on 10,959 of the 17,381 units targeted in its Value Add Initiative since January 2018[130] Share Transactions - The company physically settled 5.3 million shares at a weighted average price of $19.06 per share, receiving proceeds of $101.0 million, all used for new acquisitions[135] - The company expects to receive approximately $56.0 million from forward sales transactions under the ATM Program, assuming full physical settlement at a forward sales price of $20.90 per share[138]

Financial Data and Key Metrics Changes - The third quarter 2025 corporate FFO per share was $0.29, in line with expectations [11] - Same-store NOI grew by 2.7% in the quarter, driven by a 1.4% increase in same-store revenue and a 70 basis point decrease in operating expenses compared to the prior year [11][15] - Average occupancy at the end of the quarter was 95.6%, a 20 basis point improvement from the end of the second quarter [4] Business Line Data and Key Metrics Changes - Same-store revenue increased due to higher average rents per unit and improved bad debt, which now represents less than 1% of same-store revenues [4][15] - The company completed 788 units during the quarter, achieving an average monthly rent increase of approximately $250 over unrenovated market comps, resulting in a weighted average ROI of 15% [5] - Same-store operating expenses decreased over the prior year, primarily due to lower property insurance and turnover costs [5][16] Market Data and Key Metrics Changes - Positive net absorption was observed in over half of the markets, encompassing 60% of NOI exposure [8] - Atlanta, the largest market, saw occupancy increase by 50 basis points, with asking rents up 5% [8][14] - New deliveries in IRT submarkets declined by 56% from the 2023 to 2024 quarterly averages, with supply forecasted to grow by less than 2% per year for the next several years [7] Company Strategy and Development Direction - The company will continue to evaluate investment opportunities, including value-add renovations, acquisitions, deleveraging, and share buybacks to drive long-term shareholder value [6][19] - The focus remains on optimizing near-term performance through stable occupancy, managing expenses, and investing in the value-add program [10] - The company is cautiously optimistic about a better operating environment in 2026, supported by a differentiated portfolio of Class B assets and a strong balance sheet [21] Management's Comments on Operating Environment and Future Outlook - Management noted that while market fundamentals are improving, it is taking longer than expected, but there is light at the end of the tunnel with increasing pricing power [10][21] - The company expects apartment demand to remain steady, driven by employment opportunities and favorable rent versus buy economics [8] - Management highlighted that bad debt has improved significantly, with expectations to stabilize sustainably below 1% of revenues [15][16] Other Important Information - The company acquired two communities in Orlando for an aggregate purchase price of $155 million, which more than doubled its number of apartment units in the area [5][17] - The company recorded a $12.8 million impairment on an asset held for sale in Denver due to recent market pressures [17] - The updated acquisition guidance is $215 million, reflecting only closed acquisitions to date, while disposition guidance is $161 million [20] Q&A Session Summary Question: Can you discuss the current supply pressures compared to earlier in the year? - Management noted that while some markets are experiencing softness, they expect movement early next year as supply pressures are waning [25][27] Question: What are the expectations for lease rate growth in 2026? - Management indicated that they expect new leases to begin hitting break-even points in the first half of next year, with cautious optimism for lease rate growth [51][55] Question: How are concessions trending in competitive markets? - Concessions are generally stable, with 23% of leases having some type of concession, down from 30% in Q3 of last year [56][60] Question: What is the company's appetite for buybacks given the current market conditions? - Management expressed a strong appetite for buybacks, recognizing the disconnect between market trading and implied cap rates [66][70] Question: Are there any labor availability issues affecting operations? - Management confirmed that there are no significant labor availability issues across their teams [110][111] Question: Have there been any shifts in tenant behavior that could influence rent growth? - Management has not observed significant shifts in tenant behavior affecting rent growth, but they are actively monitoring the situation [113][106]

分组1 - Independence Realty Trust (IRT) reported quarterly funds from operations (FFO) of $0.29 per share, missing the Zacks Consensus Estimate of $0.30 per share, representing an FFO surprise of -3.33% [1] - The company posted revenues of $167.14 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.49%, compared to revenues of $159.86 million a year ago [2] - The stock has underperformed the market, losing about 20.4% since the beginning of the year, while the S&P 500 gained 17.2% [3] 分组2 - The current consensus FFO estimate for the coming quarter is $0.32 on revenues of $173.81 million, and for the current fiscal year, it is $1.18 on revenues of $669.15 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the bottom 41% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - Q3 2025 EPS was $0.03, with Core Funds from Operations (CFFO) per share at $0.29, consistent with expectations[10] - Net income available to common shares for Q3 2025 was $6,893,000, a decrease of 14.4% from $8,046,000 in Q2 2025[41] - Total revenue for the three months ended September 30, 2025, was $167,138,000, an increase of 4.4% compared to $160,135,000 for the same period in 2024[46] - Funds From Operations (FFO) for the three months ended September 30, 2025, was $71,104,000, up from $68,258,000 in the same period last year, representing an increase of 2.6%[48] - Core Funds From Operations (CFFO) for the three months ended September 30, 2025, was $69,987,000, compared to $66,802,000 for the same period in 2024, reflecting a growth of 3.3%[48] - Net income for the three months ended September 30, 2025, was $6,995,000, compared to a net income of $12,620,000 for the same period in 2024, representing a decrease of 44.5%[49] - Adjusted EBITDA for the three months ended September 30, 2025, was $92,643,000, an increase of 5.0% from $87,453,000 in the same period of 2024[49] Revenue and Occupancy - Same-store Net Operating Income (NOI) grew by 2.7% in Q3 2025 compared to Q3 2024[14] - Rental revenue increased by 1.4%, while property operating expenses decreased by 0.7%[10] - Same-store occupancy rate was 95.6% at the end of Q3 2025, with a resident retention rate of 60.4%[10] - Total rental and other property revenue for the three months ended September 30, 2025, was $166,888,000, up from $159,860,000 in the same period of 2024, indicating a growth of 4.3%[50] - Average occupancy remained stable at 95.3% for the three months ended September 30, 2025, consistent with the same period in 2024[53] - Total same-store portfolio net operating income for the nine months ended September 30, 2025, was $280,621,000, representing a 2.7% increase compared to $273,350,000 in 2024[56] Expenses and Debt - Total expenses for the three months ended September 30, 2025, were $136,649,000, an increase from $129,192,000 in the same quarter of 2024[48] - Interest expense for the three months ended September 30, 2025, was $20,455,000, an increase from $18,308,000 in the same quarter of 2024[48] - As of September 30, 2025, the company's net debt to Adjusted EBITDA was 6.0x, with a weighted average effective interest rate of 4.3% on consolidated debt[23] - Total debt stood at $2,296,202,000 as of September 30, 2025, compared to $2,249,801,000 in June 2025[45] - Total liabilities increased to $2,477,332,000 as of September 30, 2025, from $2,411,666,000 in June 2025[45] Renovations and Acquisitions - The company completed 788 renovations in its Value Add Program during Q3 2025, achieving an average ROI of 14.8%[10] - Two communities were acquired in Orlando for a total of $155 million, increasing exposure in the area from 617 units to 1,260 units[18] - The company has committed to invest $20.0 million in a joint venture for a new multifamily project in Indianapolis, Indiana[25] - In 2025, the company acquired 923 units across three properties for a total purchase price of $214.5 million, averaging $232 per unit[62] - The company disposed of 720 units at Ridge Crossings for a sale price of $111 million, averaging $154 per unit[63] Guidance and Future Expectations - The company reaffirmed its full-year 2025 guidance midpoints[10] - The updated 2025 EPS guidance is between $0.27 and $0.28, reflecting a decrease of $0.23 at the midpoint compared to previous guidance[27] - The company anticipates property revenue growth of 1.6% to 1.8% for the same-store portfolio in 2025[31] - The acquisition volume for 2025 is projected to be $215 million, significantly lower than the previous estimate of $580 million to $650 million[31] - The company expects to close the sale of the Jamestown at St. Matthews property at a gain of approximately $18.0 million by year-end 2025[25] Market and Asset Management - Total gross assets reached $7,058,026,000 as of September 30, 2025, an increase from $6,874,320,000 in June 2025[41] - The total gross real estate assets amounted to $6,645,855,000 as of September 30, 2025[57] - The total number of properties in the portfolio is 115, with an average occupancy rate of 95.1%[57] - The company has approximately $628.1 million in liquidity as of September 30, 2025, from cash and cash equivalents[23] - The company maintains hedges totaling $1,050,000, effectively fixing a portion of its floating rate debt[75]

Core Viewpoint - Independence Realty Trust (IRT) presents a higher-risk, higher-reward investment opportunity within the residential REIT sector, focusing on the Sunbelt markets with a highly leveraged balance sheet [1] Group 1: Company Overview - IRT offers concentrated exposure to the Sunbelt markets, which may appeal to investors seeking growth potential [1] - The company operates with a highly leveraged balance sheet, indicating a strategy that could lead to significant returns or risks [1] Group 2: Investment Strategy - The investment approach emphasizes finding undervalued companies with strong growth potential and solid management teams [1] - The strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - Independence Realty Trust (IRT) presents a higher-risk, higher-reward investment opportunity within the residential REIT sector, focusing on the Sunbelt markets with a highly leveraged balance sheet [1] Group 1: Company Overview - IRT offers concentrated exposure to the Sunbelt markets, which may appeal to investors seeking growth potential [1] - The company operates with a highly leveraged balance sheet, indicating a strategy that could lead to significant returns or risks [1] Group 2: Investment Strategy - The investment approach emphasizes finding undervalued companies with strong growth potential and solid management teams [1] - The strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - Independence Realty Trust Inc. is a real estate investment trust focused on multifamily communities in non-gateway U.S. markets, with upcoming earnings expectations indicating a decline in EPS but an increase in quarterly revenue [1][2]. Financial Performance - The company is set to report Q3 2025 earnings on October 29, with analysts expecting EPS of $0.15, down from $0.29 in the prior-year period [2]. - Quarterly revenue is anticipated to reach $169.54 million, an increase from $159.86 million a year earlier [2]. - For Q2 2025, the company reported FFO of $0.28, meeting expectations, while revenues of $161.89 million fell short of the consensus of $165.21 million [6]. Historical Investment Performance - If an investor had purchased Independence Realty stock 10 years ago at approximately $7.55 per share, a $10,000 investment would have allowed the purchase of roughly 1,325 shares, which would now be valued at $21,430 based on the current share price of $16.18 [3]. - Over the past decade, the company has paid about $6.92 in dividends per share, resulting in an additional $9,166 from dividends alone [4]. - The total value of the investment, combining stock appreciation and dividends, would be $30,596, representing a total return of 205.96%, which is lower than the S&P 500 total return of 298.30% for the same period [5]. Future Outlook - The company has a consensus rating of "Buy" with a price target of $20.86, suggesting a potential upside of over 28% from the current stock price [6]. - The CEO highlighted the company's focus on capital deployment opportunities by trading out of older assets into newer communities in high-growth markets, despite ongoing macroeconomic challenges [7].

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes on accounting policies, real estate investments, indebtedness, derivatives, equity, and segment reporting [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :---------------- | | Total Assets | $5,962,626 | $6,057,919 | $(95,293) | -1.57% | | Investments in real estate, net | $5,546,788 | $5,622,979 | $(76,191) | -1.35% | | Indebtedness, net | $2,249,801 | $2,274,651 | $(24,850) | -1.09% | | Total Equity | $3,550,960 | $3,575,074 | $(24,114) | -0.67% | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Total revenue | $162,188 | $158,402 | $3,786 | 2.39% | | Total expenses | $134,681 | $129,385 | $5,296 | 4.09% | | Net income allocable to common shares | $8,046 | $10,354 | $(2,308) | -22.29% | | Diluted EPS | $0.03 | $0.05 | $(0.02) | -40.00% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Total revenue | $323,431 | $318,937 | $4,494 | 1.41% | | Total expenses | $268,787 | $261,260 | $7,527 | 2.88% | | Net income allocable to common shares | $16,400 | $27,930 | $(11,530) | -41.28% | | Diluted EPS | $0.07 | $0.12 | $(0.05) | -41.67% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Net income | $8,172 | $10,555 | $(2,383) | -22.58% | | Total other comprehensive (loss) income | $(5,404) | $(124) | $(5,280) | 4258.06% | | Comprehensive income | $2,776 | $10,233 | $(7,457) | -72.87% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net income | $16,698 | $28,515 | $(11,817) | -41.44% | | Total other comprehensive (loss) income | $(14,392) | $9,099 | $(23,491) | -258.17% | | Comprehensive income | $2,373 | $36,797 | $(34,424) | -93.54% | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total Stockholders' Equity | $3,420,189 | $3,442,275 | | Total Equity | $3,550,960 | $3,575,074 | - Common dividends declared for **Q2 2025** were **$0.17 per share**, an increase of **6.3%** over the prior quarterly rate of **$0.16 per share**. For **Q1 2025**, dividends were **$0.16 per share**[13](index=13&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Net issuance of common shares for the **six months ended June 30, 2025**, contributed **$50.01 million** to additional paid-in capital[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Cash flow provided by operating activities | $142,614 | $127,080 | $15,534 | 12.22% | | Cash flow (used in) provided by investing activities | $(34,342) | $238,553 | $(272,895) | -114.39% | | Cash flow used in financing activities | $(109,198) | $(368,967) | $259,769 | -70.41% | | Net change in cash and cash equivalents, and restricted cash | $(926) | $(3,334) | $2,408 | -72.23% | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1: Organization](index=10&type=section&id=NOTE%201:%20Organization) - **Independence Realty Trust, Inc.** (IRT) is a self-administered and self-managed Maryland REIT primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets[17](index=17&type=chunk) - As of **June 30, 2025**, IRT owned and operated **113 multifamily apartment properties** (**33,175 units**) and had interests in **five unconsolidated joint ventures** (**886 operating units** and **702 units** under development)[17](index=17&type=chunk) [NOTE 2: Summary of Significant Accounting Policies](index=10&type=section&id=NOTE%202:%20Summary%20of%20Significant%20Accounting%20Policies) [a. Basis of Presentation](index=10&type=section&id=a.%20Basis%20of%20Presentation) - The unaudited interim condensed consolidated financial statements are prepared in accordance with GAAP, with certain information condensed or omitted as permitted for interim reports[19](index=19&type=chunk) [b. Principles of Consolidation](index=10&type=section&id=b.%20Principles%20of%20Consolidation) - The financial statements consolidate IRT, IROP, and its subsidiaries, with IROP considered a variable interest entity where IRT is the primary beneficiary[20](index=20&type=chunk) [c. Use of Estimates](index=10&type=section&id=c.%20Use%20of%20Estimates) - The preparation of financial statements requires management to make estimates and assumptions, and actual results could differ from these estimates[21](index=21&type=chunk) [d. Cash and Cash Equivalents](index=10&type=section&id=d.%20Cash%20and%20Cash%20Equivalents) - Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less[22](index=22&type=chunk) [e. Restricted Cash](index=10&type=section&id=e.%20Restricted%20Cash) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------- | :----------------------------- | :------------------------------- | | Restricted cash | $23,035 | $22,224 | [f. Investments in Real Estate](index=11&type=section&id=f.%20Investments%20in%20Real%20Estate) [Allocation of Purchase Price of Ac

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [5][10] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [10] - Same store operating expenses decreased by 60 basis points compared to the prior year quarter [7][10] Business Line Data and Key Metrics Changes - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [8] - Renewal rental increases were approximately 3.9%, contributing to 70 basis points of blended rent growth [11] Market Data and Key Metrics Changes - Deliveries in the company's markets are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [9] - The company noted that supply pressures in markets like Atlanta, Dallas, and Denver have negatively impacted new lease trade-outs [11][12] Company Strategy and Development Direction - The company is focusing on capital recycling by trading out older assets with higher future CapEx needs for newer communities with lower CapEx profiles [8][12] - The acquisition pipeline remains strong, with an updated guidance implying an additional $315 million in acquisitions before year-end [9][14] Management's Comments on Operating Environment and Future Outlook - Management believes they are at the beginning of a multi-year period of improving fundamentals in the multifamily sector, with stable renewals and strong demand expected to continue [20] - The company adjusted its full-year 2025 guidance to reflect lower revenue growth expectations, offset by lower expense growth [15][16] Other Important Information - The company has identified three assets for sale and expects to sell them in the fourth quarter [8][12] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [15] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management explained that the new lease trajectory was based on comparing expiring rents with current estimates and expectations for month-to-month changes [25] Question: Why is there not a significant pickup in new lease growth despite high retention and occupancy? - Management attributed the lack of new lease growth to ongoing supply pressures and macroeconomic uncertainties affecting market rates [31][32] Question: What gives you confidence in predicting higher occupancy in the back half of the year? - Management noted that occupancy has been increasing in July and they expect to maintain this trend [34] Question: Can you provide insights on the current transaction environment and bid-ask spreads? - Management indicated that the bid-ask spread has narrowed as sellers have become more realistic about property values [70] Question: How is the company addressing competition from Class A properties offering aggressive concessions? - Management acknowledged that aggressive concessions from Class A properties require more effort to maintain occupancy and manage rents in the Class B portfolio [82]