Financial Data and Key Metrics Changes - The company reported core FFO of $0.48 per share for Q2 2025, with a year-to-date total of $0.97 per share, aligning with the full-year guidance range of $1.88 to $1.94 per share [24] - AFFO for the quarter was $0.41 per share, bringing the year-to-date total to $0.84 per share, tracking well against the full-year guidance range of $1.58 to $1.64 per share [24][25] - The net debt to trailing twelve-month adjusted EBITDA ratio stood at 5.3 times, slightly below the target range of 5.5 to 6 times, indicating a disciplined approach to leverage [22] Business Line Data and Key Metrics Changes - Same store core revenue growth for Q2 was 2.4% year-over-year, while core operating expenses rose by 2.2%, resulting in a percent NOI growth [16] - Blended rent growth for Q2 was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases, highlighting the importance of renewals as over three-quarters of the business comes from this segment [17][36] - Average resident tenure increased to 40 months, with a renewal rate approaching 80%, reflecting high resident satisfaction and lower turnover costs [8][16] Market Data and Key Metrics Changes - The company acquired just under 1,000 wholly owned homes in Q2, primarily newly built, which supports the ongoing demand for rental units in the U.S. housing market [10] - The average new resident age is in the late 30s, with an estimated 13,000 people turning 35 every day for the next decade, indicating a long-lasting demand tailwind for the business [10] - Same store average occupancy for July was reported at 96.6%, with renewal lease rate growth at 5% and new lease rate growth at 1.3% [19] Company Strategy and Development Direction - The company aims to consistently deliver high-quality housing in desirable neighborhoods, supported by a resident-first service platform [12] - The launch of a developer lending program is intended to allow the company to participate earlier in the value chain, with the goal of purchasing communities upon stabilization [11] - The company is focused on maintaining strong partnerships with builders to enhance acquisition strategies and capitalize on market opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the acquisition guidance of $500 million to $700 million for the year, supported by a robust pipeline [11] - The macro environment continues to reinforce the value of the company's offerings, with a significant need for new homes in the U.S. [9] - Management acknowledged the challenges posed by seasonal turnover and market supply, but remains optimistic about the long-term demand for rental housing [31][36] Other Important Information - The company has a strong balance sheet with approximately $1.3 billion in unrestricted cash and undrawn capacity on its revolving credit facility, providing flexibility for growth initiatives [22] - Over 83% of the company's debt is unsecured, and nearly 88% is fixed rate or swapped to fixed rate, enhancing financial stability [22] Q&A Session Summary Question: Occupancy guidance for the second half of the year - Management indicated that the occupancy guidance reflects expected seasonal turnover, with July occupancy at 96.6% and a typical decline anticipated in Q3 [30] Question: New lease pricing and market conditions - Management acknowledged that new lease pricing has been under pressure due to increased supply but expects improvements as the market absorbs existing inventory [34] Question: Transaction market and portfolio opportunities - The company continues to evaluate portfolio opportunities and engage with homebuilders for attractive acquisitions, maintaining a cautious approach [39] Question: BTR supply and scattered site inventory - Management noted that while scattered site supply is putting pressure on rents, the overall BTR market is showing signs of improvement [50] Question: Property tax expectations - Management anticipates that property tax expense growth will return to historical levels over the long term, despite current pressures [102]

Core Viewpoint - Neinor Homes has reported strong growth in its Asset Management business, solid operating margins, and record commercialization activity in the first half of 2025, alongside a strategic move to acquire Aedas Homes through a voluntary tender offer [1][19]. Financial Performance - In the first half of 2025, Neinor notarized 803 housing units, generating total revenues of €148 million, with the Build-to-Sell (BTS) business contributing €112 million from 323 units sold at an average selling price (ASP) of €348,000 [2][3]. - The company achieved a gross margin of 30.6%, resulting in a gross profit of €45 million and an EBITDA of €18 million, with adjusted net income at €6 million [3]. - Neinor distributed €155 million to shareholders through dividends, while adjusted net debt rose to €334 million, increasing the loan-to-value (LTV) ratio to 22.9% [4]. Commercialization and Sales - The company pre-sold 1,701 housing units in 1H25, a 45% increase year-over-year, generating an economic value of €579 million with an ASP of €340,000 per unit [5][6]. - Within the BTS portfolio, pre-sales reached 957 units valued at €348 million, marking a 20% increase compared to the previous year [6]. Strategic Initiatives - Neinor's disciplined investment strategy has led to the deployment of €1.8 billion since 2023, targeting a return of over 20% IRR [15][16]. - The company has successfully monetized its Build-to-Rent (BTR) portfolio, generating approximately €325 million in revenue from the sale of 1,340 rental units since 2023 [12][13]. - The total managed order book reached a record 4,520 housing units, representing €1.63 billion in future revenues [9]. Future Outlook - Neinor anticipates delivering around 2,000 units in 2025, with total revenues projected between €600 million and €700 million [8]. - The company is actively reviewing additional opportunities totaling up to €350 million for the development of over 3,000 housing units, primarily in Madrid and Malaga [18]. - The voluntary tender offer for Aedas Homes is expected to be settled in 4Q25, marking a significant milestone in Neinor's strategic roadmap [7][19].