Financial Results and Supplemental Information SECOND QUARTER 2025 July 30, 2025 Table of Contents QUARTERLY RESULTS | Office Properties Income Trust Announces Second Quarter 2025 Financial Results | | 4 | | --- | --- | --- | | Second Quarter 2025 Summary | | 5 | | FINANCIALS | | | | Key Financial Data | | 7 | | Condensed Consolidated Statements of Income (Loss) | | 8 | | Condensed Consolidated Balance Sheets | | 9 | | Debt Summary | | 10 | | Debt Maturity Schedule | | 11 | | Leverage Ratios, Coverage Ratio ...

Core Insights - UDR Inc. reported second-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, exceeding the Zacks Consensus Estimate of 62 cents and up from 62 cents in the prior-year quarter [1][8] - The company experienced year-over-year growth in same-store net operating income (NOI) driven by higher effective blended lease rates and raised its 2025 FFOA per share guidance [1][8] Financial Performance - Quarterly revenues from rental income reached $423.0 million, surpassing the Zacks Consensus Estimate of $422.2 million, with total revenues at $425.4 million, both showing over 2% growth year-over-year [2] - Same-store revenues increased by 2.5% year-over-year, while same-store expenses rose by 1.7%, leading to a 2.9% improvement in same-store NOI [3][8] - The effective blended lease rate grew by 2.8% during the quarter, with a weighted average same-store physical occupancy of 96.9%, which increased by 10 basis points year-over-year [3] Balance Sheet and Liquidity - As of June 30, 2025, UDR had $1.1 billion in liquidity, with total debt at $5.8 billion, of which only $531.8 million (9.6%) is maturing through 2026 [4] - The net debt-to-EBITDA ratio improved to 5.5X in the second quarter, down from 5.7X in the previous quarter [4] Portfolio Activity - UDR acquired the developer's equity interest in Broadridge, a 478-unit apartment community in Philadelphia, PA, during the second quarter [6] Guidance - The company raised its full-year 2025 FFOA per share guidance midpoint to $2.52 from $2.50, with expectations for third-quarter 2025 FFOA per share in the range of 62-64 cents [7][9] - For 2025, UDR projects same-store revenue growth rates between 1.75-3.25%, same-store expenses between 2.50% and 3.50%, and same-store NOI between 1.50% and 3.00% [9]

Core Insights - City Office REIT, Inc. reported its financial results for the second quarter ended June 30, 2025, highlighting significant developments including a pending merger and property sales [1][4][18]. Financial Performance - Rental and other revenues for the quarter were $42.3 million, with a GAAP net loss attributable to common stockholders of approximately $107.2 million, or ($2.66) per fully diluted share [9][39]. - Core Funds from Operations (Core FFO) were approximately $11.8 million, or $0.28 per fully diluted share, while Adjusted Funds from Operations (AFFO) were approximately $3.0 million, or $0.07 per fully diluted share [9][40]. - Same Store Cash NOI increased by 1.8% for the three months ended June 30, 2025, compared to the same period in the prior year [5][41]. Portfolio Operations - The total portfolio as of June 30, 2025, contained 5.4 million net rentable square feet, with an occupancy rate of 82.5%, or 86.8% including signed leases not yet occupied [5][9]. - The company executed approximately 355,000 square feet of new and renewal leases during the quarter, with new leases having a weighted average lease term of 8.4 years at an effective annual rent of $31.45 per square foot [6][7]. Merger and Sale Transactions - The company entered into a definitive merger agreement with MCME Carell Holdings, LP, under which MCME Carell will acquire all issued and outstanding shares of City Office for $7.00 per share, representing a 26% premium to the closing share price prior to the announcement [4][18]. - The company also entered into a purchase and sale agreement to sell its properties in Phoenix, Arizona, for an aggregate sale price of $296.0 million, which is part of the conditions for the merger [3][12]. Capital Structure - As of June 30, 2025, the company had total principal outstanding debt of approximately $649.2 million, with 81.9% of the debt being fixed rate or effectively fixed due to interest rate swaps [10][11]. - The company declared a second quarter dividend of $0.10 per share of common stock, which was paid on July 24, 2025, but has resolved to suspend future common stock dividend payments through the expected close of the merger [9][16][14]. Outlook - In light of the pending merger, the company will no longer provide guidance nor affirm past guidance [18].

Financial Performance - For the quarter ended June 30, 2025, net income attributable to common shareholders was $1.3 billion, or $10.02 per diluted share, compared to $52.1 million, or $0.42 per diluted share for the same period in 2024 [7] - Core Funds from Operations (Core FFO) for the quarter was $1.76 per share, down from $1.86 in the same period of 2024 [7] - North America Same Property Net Operating Income (NOI) for manufactured housing (MH) and recreational vehicle (RV) increased by 4.9% year-over-year [7][8] Operational Highlights - North America Same Property adjusted blended occupancy for MH and RV increased by 150 basis points to 99.0% at June 30, 2025, from 97.5% at June 30, 2024 [9] - The number of MH and annual RV revenue-producing sites increased by approximately 460 sites during the quarter [8] - UK Same Property NOI increased by 10.2% for the quarter ended June 30, 2025, compared to the same period in 2024 [7] Capital Management - The company returned over $830 million to shareholders, including special cash distributions and share repurchases [7] - A one-time special cash distribution of $4.00 per common share was paid, totaling $521.3 million [14] - The company repurchased approximately 1.6 million shares at an average cost of $124.03 per share for a total of $202.8 million during the quarter [15] Strategic Developments - The company completed the sale of Safe Harbor Marinas, generating approximately $5.25 billion in pre-tax cash proceeds and a book gain of $1.4 billion [12] - The company is transitioning to a pure-play owner and operator of manufactured housing and RV communities, enhancing financial flexibility and shareholder value [5] - Charles D. Young has been appointed as the new CEO, effective October 1, 2025, succeeding Gary A. Shiffman [17] Guidance Updates - The company raised its full-year 2025 Core FFO per share guidance to a range of $6.51 to $6.67 [7] - North American Same Property NOI growth guidance has been increased to a range of 3.9% to 5.6% [7] - UK Same Property NOI growth guidance has been updated to a range of 1.3% to 3.3% [7]

Core Insights - Mid-America Apartment Communities, Inc. (MAA) reported strong operating results for Q2 2025, with Core FFO results exceeding expectations despite macroeconomic uncertainties [3][4] - The company experienced record demand for rental housing, leading to a 0.5% growth in Same Store effective blended lease rates and a 100 basis point improvement in Same Store blended pricing [3][5] - MAA's development pipeline is nearing $1 billion, which is expected to support robust revenue and earnings performance [3][4] Financial Performance - For the three months ended June 30, 2025, MAA reported earnings per diluted share of $0.92, up from $0.86 in the same period of 2024 [2][25] - Funds from operations (FFO) per diluted share increased to $2.19 from $2.06 year-over-year, while Core FFO per diluted share decreased slightly to $2.15 from $2.22 [2][25] - Total rental and other property revenues for Q2 2025 were $549.9 million, compared to $546.4 million in Q2 2024 [25] Same Store Operating Results - Same Store revenues decreased by 0.3%, while expenses increased by 3.8%, resulting in a 2.6% decline in Net Operating Income (NOI) for Q2 2025 compared to Q2 2024 [4][5] - The average effective rent per unit for Same Store properties was $1,690, with a physical occupancy rate of 95.4% [6][5] - Resident turnover in the Same Store Portfolio remained low at 41.0%, with only 11.0% of move-outs attributed to purchasing single-family homes [5][6] Development and Lease-up Activity - MAA has eight communities under development with total expected costs of $942.5 million, and recently began construction on a 336-unit multifamily apartment community in Charleston, South Carolina [5][8] - As of June 30, 2025, MAA had six lease-up projects with a total of 2,101 units and a physical occupancy rate of 80.7% [9][5] - Three of the lease-up projects are expected to stabilize in Q3 2025, while two are projected for Q4 2025 and one for Q2 2026 [9][5] Balance Sheet and Financing - As of June 30, 2025, MAA had $1.0 billion in combined cash and available capacity under its unsecured revolving credit facility [11][12] - Total debt was reported at $5.048 billion, with a total debt to adjusted total assets ratio of 28.9% [12][26] - The company declared its 126th consecutive quarterly common dividend, with an annual dividend rate of $6.06 per common share [13][25] 2025 Guidance - MAA updated its 2025 guidance, expecting earnings per diluted common share to range from $5.51 to $5.83 and Core FFO per diluted share to range from $8.61 to $8.93 [16][14] - The company anticipates Same Store property revenue growth between -0.35% to 1.15% and NOI growth between -2.15% to -0.15% for the year [16][14]

Core Insights - American Assets Trust (AAT) reported a flat Funds from Operations (FFO) per diluted share of $0.52 for Q2 2025, with a slight decline in FFO when excluding lease termination fees [26][31][32] - The company is experiencing mixed performance across its portfolio, with same-store cash Net Operating Income (NOI) approximately flat year-over-year, while specific segments like multifamily and mixed-use are facing declines [5][28][31] Financial Performance - Same-store multifamily portfolio's NOI declined by 3.9%, attributed to lower rental income at Hasselhoe on Eighth and higher operating expenses at Pacific Ridge [5][28] - Same-store mixed-use portfolio's NOI decreased by approximately 5%, primarily due to lower than anticipated Average Daily Rate (ADR) at Embassy Suites Waikiki [5][28] - Retail segment cash NOI grew by 4.5%, with the portfolio ending the quarter 98% leased and executing over 220,000 square feet in new or renewal leases [9][16] Leasing Activity - The office portfolio ended the quarter 82% leased, with same-store office at 87% leased, completing 102,000 square feet of leasing [9][12] - Increased demand from technology and AI tenants is driving the leasing pipeline, particularly in the San Francisco office market [7][10] - The company has a pipeline of potential incremental FFO of $0.30 per share, mainly related to leasing up vacant office space [7][31] Market Conditions - The hotel segment is facing challenges due to lower paid occupancy and RevPAR amid ongoing softness in domestic leisure demand and heightened rate competition in Waikiki [5][22] - Liquidity remains strong with total available liquidity of $544 million, consisting of $144 million in cash and $400 million in revolver availability [30] - The company is holding surplus cash for opportunistic deployment, favoring acquisitions in multifamily or retail segments over office investments [7][31] Guidance and Outlook - Full-year 2025 FFO guidance has been increased to a range of $1.89 to $2.01 per share, with a midpoint of $1.95, reflecting steady momentum across core sectors [31][32] - The guidance assumes stable conditions, with potential upside depending on rent collections, multifamily performance, and tourism recovery in Hawaii [31][32][33] - Management remains optimistic about the long-term strength of the portfolio despite current market challenges [25][33]

Core Insights - Regency Centers Corporation (REG) reported a second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, exceeding the Zacks Consensus Estimate of $1.12, and reflecting a 9.4% increase from the prior-year quarter [1][9] - The company experienced strong leasing activity, with improvements in same-property net operating income (NOI) and base rents, leading to an increased 2025 NAREIT FFO per share outlook [1][10] Financial Performance - Total revenues reached $380.8 million, marking a 6.6% increase from the previous year and surpassing the Zacks Consensus Estimate of $377.4 million [2] - Same-property NOI, excluding lease termination fees, rose 7.4% year-over-year to $274.8 million, with base rent growth contributing 4.5% to this increase [4][9] Leasing Activity - In Q2 2025, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10% [3] - As of June 30, 2025, the same property portfolio was 96.5% leased, remaining flat sequentially but increasing by 100 basis points year-over-year [3] Portfolio Management - The company strategically deployed over $600 million into accretive investments year-to-date, including the acquisition of five high-quality shopping centers in Southern California [2] - In Q2 2025, REG acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, for approximately $5 million, and disposed of Van Houten Plaza in Passaic, NJ, for about $6 million [6] - Following the quarter end, REG acquired a portfolio of five shopping centers in Rancho Mission Viejo, CA, for $357 million and disposed of 101 7th Avenue in New York, NY, for $11 million [7] Balance Sheet - As of June 30, 2025, Regency Centers had nearly $1.5 billion of capacity under its revolving credit facility, with a pro-rata net debt and preferred stock to trailing 12 months operating EBITDAre ratio of 5.3X [8] 2025 Outlook - The company raised its 2025 NAREIT FFO per share guidance to a range of $4.59-$4.63, compared to the previous guidance of $4.52-$4.58, with the current Zacks Consensus Estimate at $4.54 [10]

Financial Data and Key Metrics Changes - FFO per diluted share for Q2 2025 was $0.52, with same store cash NOI approximately flat for the quarter and up 1.4% year to date compared to the prior year [5][15] - The office portfolio ended the quarter 82% leased, with the same store office portfolio at 87% leased [5] - Same store cash NOI for all sectors combined was approximately flat year over year in 2025 compared to the same period in 2024 [16] Business Line Data and Key Metrics Changes - Retail portfolio ended the quarter 98% leased, with same store cash NOI growth of 4.5% [8] - Executed over 220,000 square feet of new and renewal leases in Q2, with spreads increasing over 7% on a cash basis and 22% on a straight line basis [8] - Multifamily portfolio ended the quarter approximately 94% leased, with rent increases of 7% on renewals and 4% on new leases, resulting in a blended rent increase of 6% [10] Market Data and Key Metrics Changes - The San Diego market showed strong demand, with two major real estate firms choosing the company's properties for their new headquarters [7] - The hotel segment in Waikiki experienced a 15% decline in NOI due to lower paid occupancy and RevPAR amid ongoing softness in domestic leisure demand [12] - The Japanese yen remains around $1.47 to the US dollar, impacting tourism demand from Japan [19] Company Strategy and Development Direction - The company aims to maintain balance sheet strength and create long-term value for shareholders while navigating elevated interest rates and inflation [4] - Focus remains on driving occupancy, enhancing tenant experience, and positioning the portfolio to perform well under current utilization patterns [7] - The company is exploring opportunities in multifamily and retail sectors while avoiding office acquisitions for the time being [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strength of Hawaii's tourism market despite current challenges [19] - The company is optimistic about the potential recovery in tourism and expects improved performance at the Embassy Suites property [22] - Guidance for full year 2025 was increased to a range of $1.89 to $2.01 per FFO share, reflecting steady momentum across core sectors [20] Other Important Information - The Board approved a quarterly dividend of $0.34 per share for Q3, reflecting confidence in long-term stability and cash flows [13] - The company published its 2024 sustainability report, highlighting progress in environmental, social, and governance initiatives [13] Q&A Session Summary Question: Any changes to the same store NOI growth outlook for the various segments? - Management indicated they are still on track and hope to outperform current guidance, with some segments potentially outperforming while others may underperform [26][27] Question: Discuss the leasing pipeline and interest level for La Jolla Commons 3 and 1 Beach. - Increased touring activity and prospects were noted, with plans to develop parking and amenities to meet demand [28][29] Question: Commentary on the multifamily portfolio and new lease spreads. - Management acknowledged challenges in Portland due to excess supply but noted stability in San Diego, with expectations for growth later this year [44][45] Question: Demand drivers for the hotel in Hawaii and future expectations. - Management highlighted the impact of the Japanese yen on tourism demand and expressed cautious optimism for recovery next year [49][51] Question: Plans for utilizing cash on the balance sheet for acquisitions. - The company is actively looking for opportunities, particularly in multifamily and retail, while maintaining a cautious approach [58][59]

Financial Data and Key Metrics Changes - The company reported a net loss of $7 million or a loss of $0.28 per diluted share on total revenue of $63.1 million for Q2 2025, compared to a net income of $10.6 million or $0.40 earnings per diluted share on total revenue of $64.2 million for the same period in 2024 [5][6] - Core FFO for Q2 was $18 million or $0.71 per diluted share, an increase from $0.69 per diluted share in Q2 2024 [6][7] - The company paid a second-quarter dividend of $0.51 per share, with a 1.39 times coverage by Core FFO and a payout ratio of 72.2% [7] Business Line Data and Key Metrics Changes - Same store rent and occupancy decreased by 1.3% and 0.8% respectively, leading to a 1.1% decrease in same store NOI compared to Q2 2024 [6][12] - The company completed 555 full and partial upgrades during the quarter, leasing 381 upgraded units with an average monthly rent premium of $73 and a 26% return on investment [6][7] - Since inception, the company has completed 9,113 upgrades, resulting in an average monthly rental increase of $165 and a 20.8% return on investment [6] Market Data and Key Metrics Changes - Same store total revenue was down 20 basis points, with four out of ten markets achieving at least 1% growth, particularly Atlanta and South Florida with 3.6% and 2.3% growth respectively [12][14] - The second quarter same store NOI margin registered at 60.9%, with five out of ten markets achieving year-over-year NOI growth of 1% or greater [13][14] - The national delivery outlook is expected to contract to a GFC level output of just 77,000 units per quarter, supporting the thesis on accelerating fundamentals in 2026, 2027, and 2028 [17] Company Strategy and Development Direction - The company is focused on optimizing maintenance operations and implementing AI technology to drive efficiencies and reduce staffing costs [15][22] - The company plans to maintain a balanced approach by driving occupancy, managing controllable expenses, and supporting steady NOI growth despite transitional operating environments [24] - The company is optimistic about capital recycling in the second half of the year through targeted acquisitions and dispositions [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while bad debt has improved significantly, new supply pressures are expected to be short-term challenges, with stabilization anticipated in late 2025 [20] - The company expects second half 2025 revenue to be more muted than initially thought, with an average occupancy expectation of 94% [21] - Management highlighted that despite decelerating rents, growth is still expected compared to the trough in 2024, supported by stabilizing occupancy and improving collections [21][23] Other Important Information - The company entered into a new five-year $100 million SOFR swap at a fixed rate of 3.489% [8] - A $200 million corporate revolving credit facility was established, with an option to increase by an additional $200 million upon lender consent [10][11] Q&A Session Summary Question: How much of the $8 million in recurring capitalized maintenance expenditures year to date are non-revenue producing? - Management indicated that elevated spending is skewed towards non-revenue generating activities due to refinancing activities and significant projects in Nashville [27][28] Question: What drove the larger increase in the rehab program to over 500 units in Q2? - Management attributed the increase to a focus on identifying opportunities and deploying resources faster than expected [30][31] Question: What is driving the lower churn costs? - Management noted that higher retention rates and targeted upgrades to existing units are contributing to lower churn costs [43][44]

July 28, 2025 Forward Looking Statements and Risk Factors This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "pro forma," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and inv ...