Financial Data and Key Metrics Changes - The company reported Core FFO per share of $0.47 and AFFO per share of $0.38 for the third quarter of 2025 [20] - Same store NOI growth was 1.1% for the third quarter, which is typically the most modest growth period due to elevated seasonal turnover [16] - The company ended the quarter with total available liquidity of $1.9 billion, providing financial capacity and flexibility [18] Business Line Data and Key Metrics Changes - Same store renewal rent growth was 4.5%, 30 basis points higher than the same period last year [8] - Average resident tenure increased to 41 months, indicating strong customer retention [8] - New lease rent growth was slightly negative at -2.9% due to elevated supply in select markets [15] Market Data and Key Metrics Changes - The company noted that overall affordability remains stretched, with many households finding leasing more economical than homeownership [7] - The average savings for those who choose to lease compared to owning is approximately $900 per month [7] - Preliminary same store results for October showed occupancy at approximately 96%, consistent with expectations [16] Company Strategy and Development Direction - The company is pursuing channel-agnostic, location-specific growth focused on long-term total returns through partnerships with home builders, construction lending, and third-party management [9] - The capital allocation framework aims to fund organic growth, invest in high-return opportunities, and maintain a strong balance sheet [10] - The company plans to host an Investor Day on November 17, 2023, to provide deeper insights into its strategy and growth initiatives [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand for well-located single-family rentals, supported by strong long-term fundamentals [10] - The company is optimistic about the potential for lower mortgage rates to increase liquidity and transaction volumes in the housing market [10] - Management acknowledged the dynamic operating environment and emphasized the importance of operational excellence and customer-centric service [12] Other Important Information - The company successfully completed a $600 million bond offering in August, maturing in January 2033 with a coupon of 4.95% [19] - The Board of Directors authorized a share repurchase program of up to $500 million as part of its capital allocation strategy [20] Q&A Session Summary Question: Supply outlook for 2026 regarding build-to-rent deliveries - Management noted that the supply backdrop includes build-to-rent deliveries and potential conversions of for-sale products to rentals, with a cautious optimism for markets like Florida and Atlanta [26][27] Question: Concerns about occupancy and achieving guidance - Management indicated that the occupancy dip to 96.5% was expected and emphasized the strength of the renewal business, which accounts for over 75% of their portfolio [32][33] Question: Negotiation tendencies of tenants in build-to-rent communities - Management confirmed that tenants do negotiate on renewals, but there is no significant difference in behavior between build-to-rent and scattered site portfolios [36] Question: Impact of Washington rhetoric on home builders - Management observed softening demand among home builders but noted that they are managing inventory better and are encouraged by production plans for 2025 [41][42] Question: Capital allocation and acquisitions guidance - Management discussed the opportunistic buying of homes at discounts and the importance of balancing acquisitions with stock buybacks as part of their capital allocation strategy [45][51] Question: Demand drivers and pricing power - Management expressed confidence in demand for single-family rentals, noting consistent website traffic and the effectiveness of their value-added services [69] Question: Loss to lease and turnover expectations - Management indicated that loss to lease is in the low to mid single digits and expects turnover to return to long-term averages, driven by the affordability gap [71][76] Question: Performance of non-same store acquisitions - Management acknowledged that acquisitions from 2022-2023 may have more challenges in aligning with margin expectations but remain confident in their investment strategy [84] Question: Public versus private market valuation disconnect - Management expressed frustration with the valuation disconnect but emphasized their strategy of recycling capital to create shareholder value [88][89] Question: Competitive supply dynamics - Management noted that while there is no acceleration in supply, they are cautiously optimistic about certain markets and are prepared to be more aggressive in filling vacancies [94]

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].