Financial Data and Key Metrics Changes - The first quarter same store revenue and NOI growth were 2.6% and 2.8% respectively, exceeding expectations due to lower resident turnover and higher occupancy [14][15] - FFO as adjusted per share for the first quarter was $0.61, achieving the midpoint of guidance, with a sequential decline attributed to seasonal trends [24][25] - The company reaffirmed its full year 2025 guidance, indicating confidence in continued performance despite macroeconomic uncertainties [7][12] Business Line Data and Key Metrics Changes - Same store revenue growth was driven by a 0.9% blended lease rate growth, with renewal rate growth at 4.5% and new lease rate growth at approximately -3% [14][15] - Other income growth from rentable items was 10%, supported by continued innovation and value-added services [15][18] - Year-over-year same store expense growth was only 2.3%, better than expectations, driven by favorable real estate taxes and insurance savings [15][16] Market Data and Key Metrics Changes - Demand for apartments remains strong, with nearly 140,000 apartment homes absorbed in the first quarter, a three-decade high [10][11] - The East Coast was the strongest region, with a first quarter weighted average occupancy of 97.5% and same store revenue growth of approximately 4.5% [19][20] - The West Coast showed better-than-expected performance, with blended lease rate growth leading all regions at nearly 3% [20][21] Company Strategy and Development Direction - The company focuses on three growth drivers: innovation, customer feedback, and capital deployment strategies [7][8] - The company aims to leverage its investment-grade balance sheet to fund capital needs and take advantage of growth opportunities [10][26] - The strategy includes enhancing customer experience through initiatives like Wi-Fi rollout and package lockers, which contribute to revenue growth [9][18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects for the multifamily industry despite macroeconomic volatility [12] - The company expects continued strong demand and a favorable supply-demand dynamic due to a slowing pace of new supply [11][12] - Management highlighted the importance of maintaining a focus on total revenue performance rather than just turnover metrics [93][96] Other Important Information - The company recognized Jim Klingbill for his contributions as he decided not to seek reelection to the board [12][13] - The company has a proactive approach to managing its balance sheet, resulting in the best three-year liquidity outlook in the sector [26] Q&A Session Questions and Answers Question: Confidence in rent trends for the second half - Management noted that supply is down about 20% year over year, which supports confidence in rent trends picking up in the second half [29][30] Question: Senior loan acquisition impact - The acquisition of the senior loan is expected to allow for consolidation of the asset and operational control, with an initial cap rate projected around 4% [35][36] Question: Impact of bulk Wi-Fi rollout on renewal rents - Management indicated that the bulk Wi-Fi rollout has not negatively impacted renewal rents and is expected to enhance customer experience [40][41] Question: Development yields and joint venture activity - The company is underwriting significantly more deals with its joint venture partner, indicating a shift towards a more opportunistic approach [62][63] Question: Expectations for Dallas and Austin markets - Management expects Dallas and Austin to lag behind other markets, with positive momentum anticipated later in the year [73][75]

Financial Data and Key Metrics Changes - The first quarter FFO as adjusted per share was $0.61, achieving the midpoint of previously provided guidance, supported by same store growth that exceeded expectations [23] - Year over year same store revenue and NOI growth were 2.6% and 2.8% respectively, driven by a 0.9% blended lease rate growth [13][14] - Year over year same store expense growth was only 2.3%, better than expectations, driven by favorable real estate taxes and insurance savings [14] Business Line Data and Key Metrics Changes - Same store revenue growth was approximately 4.5% for the East Coast, slightly above the high end of full year expectations for the region [19] - The West Coast saw blended lease rate growth of nearly 3% and year over year same store revenue growth close to 3% [20] - The Sunbelt markets experienced slightly positive year over year same store revenue growth, with blended lease rate growth at negative 2.5% [21] Market Data and Key Metrics Changes - Demand for housing remains strong, with nearly 140,000 apartment homes absorbed in the first quarter, a three-decade high [9] - The pace of new supply is slowing, with 2024 multifamily completions marking a fifty-year high, but starts continue to decline [10] - Renting an apartment is on average 60% more affordable than owning a single-family home in the markets where the company operates [10] Company Strategy and Development Direction - The company remains strategically focused on three drivers of growth: innovation, customer feedback, and capital deployment [5][6] - The company is executing various forms of capital deployment to drive future accretion, including development and joint venture acquisitions [7][8] - The investment-grade balance sheet with substantial liquidity positions the company well to take advantage of growth opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects for the multifamily industry despite macroeconomic uncertainties [11] - The company expects to reassess full year guidance as it progresses through peak leasing season [5] - Management highlighted the importance of maintaining a dynamic and innovative culture to create value for residents and stakeholders [11] Other Important Information - The company recognized Jim Klingbill for his contributions as he decided not to seek reelection to the board [12] - The company has a proactive approach to managing its balance sheet, resulting in the best three-year liquidity outlook in the sector [26] Q&A Session Summary Question: Confidence in rent trends for the second half - Management noted that supply is down about 20% year over year, which supports confidence in rent trends [29] Question: Senior loan acquisition impact - The acquisition of the senior loan is expected to stabilize and improve the asset's performance over time [36] Question: Impact of bulk WiFi rollout on renewal rents - Management indicated that the rollout of bulk WiFi has not negatively impacted renewal rents and has been well received [42] Question: Expectations for Dallas and Austin markets - Management expects Dallas and Austin to lag behind other markets, with positive momentum anticipated later in the year [76] Question: Guidance adjustments - Management stated that it has a precedent of not raising guidance after the first quarter, focusing instead on how the year finishes [102]