Financial Data and Key Metrics Changes - For Q3 2025, same-store revenue and NOI growth were 2.6% and 2.3% respectively, exceeding consensus expectations [12][19] - FFOA per share was $0.65, surpassing previous guidance, leading to an increase in full-year 2025 FFOA per share guidance to a range of $2.53 to $2.55 [23][24] - Year-over-year same-store expense growth was 3.1%, better than expectations, driven by favorable real estate tax growth and insurance savings [13][14] Business Line Data and Key Metrics Changes - Blended lease rate growth was 0.8%, with renewal rate growth at 3.3% and new lease rate growth at -2.6% [12] - Annualized resident turnover improved by nearly 300 basis points compared to the prior year, contributing to revenue and expense benefits [12] - Other income growth was strong at 8.5%, driven by continued innovation and value-add services [13] Market Data and Key Metrics Changes - Coastal markets performed well, with same-store revenue growth of approximately 4%, while Sunbelt markets lagged with slightly negative revenue growth [16][19] - The East Coast had a weighted average occupancy of 96.7% and blended lease rate growth of 2% year to date [17] - The West Coast showed strong momentum with a 96.7% occupancy and 3% blended lease rate growth year to date [18] Company Strategy and Development Direction - The company focuses on data-driven capital allocation and operational innovation to enhance cash flow growth and shareholder value [6][9] - UDR aims to leverage its investment-grade balance sheet and substantial liquidity for future growth opportunities [9][27] - The company is committed to corporate stewardship and sustainability, as evidenced by its seventh annual Corporate Responsibility Report [9] Management's Comments on Operating Environment and Future Outlook - Management noted a deceleration in rent growth due to employment uncertainty, slower household formation, and high levels of new supply [5][20] - Despite current challenges, management remains optimistic about long-term fundamentals in the apartment industry, citing a structural under-housing issue in the U.S. [5][11] - The company plans to adjust its operating strategy to maximize cash flow and leverage its innovative culture for growth [20] Other Important Information - The company welcomed Rick Clark as a new board member, enhancing its board refreshment process [10] - UDR has a strong liquidity position with over $1 billion available as of September 30 [27] - The company repurchased approximately 930,000 shares at an average price of $37.70, reflecting a commitment to shareholder returns [24] Q&A Session Summary Question: Can you walk through the assumptions for a flat earn-in for 2026? - Management indicated that the flat earn-in assumes blended lease rates of approximately -1% to -2% in Q4, with regional variations expected [30][34] Question: What is driving variability in rate growth compared to peers? - Management attributed variability to consumer sentiment, job growth, and supply dynamics, particularly in the Sunbelt markets [37][39] Question: Are there concerns about retention rates given current job market conditions? - Management expressed confidence in retention rates, citing a significant reduction in turnover due to enhanced customer experience initiatives [92][93]