Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.46 for Q1 2025, representing a year-over-year growth of 6.6% [5][14] - Net income attributable to common shareholders was $110 million, or $0.30 per diluted share [14] - Same home core revenue growth was 4.3% for the quarter, with same home average occupied days strengthening to 95.9% [9][10] Business Line Data and Key Metrics Changes - Core operating expense growth was 4.2%, leading to same home core NOI growth of 4.4% for the quarter [10] - New lease spreads accelerated to 3.9% in April, with renewal and blended leasing spreads at 4.4% and 3.6% respectively [11] - The company successfully delivered 545 homes during the quarter, with 424 homes delivered to the wholly owned portfolio at an investment cost of approximately $173 million [15] Market Data and Key Metrics Changes - The Midwest markets showed strong performance, with new lease spreads nearly reaching 9% in April, up from 5.8% in Q1 [21] - The company was recognized as the 37th largest homebuilder in the U.S., up from 39th last year, indicating a growing market presence [7] - The company noted a persistent supply and demand imbalance in the U.S. housing market, with millions of quality homes still needed [6] Company Strategy and Development Direction - The company remains focused on high-quality markets and geographic diversification, with a strategic emphasis on resident experience [8][18] - The development program is expected to yield mid 5% returns as the company moves through the peak leasing season [12] - The company is maintaining a disciplined approach to acquisitions and dispositions, remaining patient for attractive opportunities [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the housing sector despite recent market uncertainties [5] - The company anticipates continued demand for high-quality rental homes, particularly as millennials enter household formation years [6][18] - Management has left the 2025 guidance unchanged, citing the need to remain cautious amid evolving economic conditions [17] Other Important Information - The company’s credit rating was revised to a positive outlook by S&P Global, reflecting improved balance sheet management [16] - The company has approximately $70 million in cash available and a $410 million drawn balance on its revolving credit facility [15] Q&A Session Summary Question: Strength in Midwest markets and future growth - Management noted that the Midwest markets are performing well, with new lease spreads showing significant acceleration, driven by quality of life and affordability [21][22] - The company is actively looking to expand its land bank in the Midwest, particularly in Columbus and Indianapolis [24] Question: Competition in North Florida and Texas - Management acknowledged increased competition from public builders but believes the impact will be temporary, with signs of improved occupancy in affected markets [28] Question: Adjustments to leasing strategy - Management confirmed that they have made changes to their leasing strategy, particularly through lease expiration management initiatives to align with peak demand [31] Question: Impact of tariffs on pricing - Management estimates a 2% to 3% impact from tariffs on development costs, with most pricing already locked in for 2025 [34][35] Question: Differences in demographics between development and scattered site homes - Management reported consistency in the demographic profiles of residents in both types of homes, with no significant differences in rent growth or turnover [54][105] Question: Guidance and economic outlook - Management remains cautious about the economic environment but has not seen signs of weakening demand or consumer behavior as of April [48][59]

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.46 for Q1 2025, reflecting a year-over-year growth of 6.6% [7][15] - Net income attributable to common shareholders was $110 million, or $0.30 per diluted share [15] - Same home core revenue growth was 4.3% for the quarter, with core operating expense growth at 4.2%, leading to same home core NOI growth of 4.4% [10][11] Business Line Data and Key Metrics Changes - Same home average occupied days improved to 95.9%, with new lease spreads accelerating to 3.9% in April [10][12] - Renewal and blended rental rate spreads were 4.4% and 3.6% respectively [10] - The company delivered 545 homes during the quarter, with 424 homes delivered to the wholly owned portfolio at an investment cost of approximately $173 million [15][16] Market Data and Key Metrics Changes - The Midwest markets showed strong performance with new lease spreads reaching almost 9% in April, up from 5.8% in Q1 [22] - The company noted a persistent supply-demand imbalance in the U.S. housing market, with millions of quality homes still needed [8][9] - The company was recognized as the 37th largest homebuilder in the U.S., up from 39th last year [9] Company Strategy and Development Direction - The company aims to align lease expirations with peak leasing season demand through a lease expiration management initiative [11][32] - The focus remains on high-quality, well-located homes, with a commitment to maintaining a strong resident experience [9][10] - The company plans to continue its disposition program while remaining patient for attractive acquisition opportunities [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the housing sector despite recent market uncertainties [7][8] - The company maintains its 2025 guidance unchanged, citing healthy demand and strong leasing activity [18] - Management highlighted the importance of the housing necessity and the ongoing need for high-quality rental options [18] Other Important Information - The company’s net debt to adjusted EBITDA ratio was 5.3 times at the end of the quarter, with approximately $70 million in cash available [16] - S&P Global revised the company's credit rating to a positive outlook, reflecting improved balance sheet management [17] Q&A Session Summary Question: Strength in Midwest markets and future growth - Management noted strong performance in the Midwest, with new lease spreads accelerating significantly, driven by quality of life and affordability [22][23] Question: Competition in North Florida and Texas - Management acknowledged increased competition but believes it may be temporary, with signs of improved occupancy in those markets [28] Question: Adjustments to leasing strategy - Management confirmed proactive adjustments to leasing strategies, including revenue optimization initiatives [31][32] Question: Impact of tariffs on development costs - Management estimated a 2% to 3% impact from tariffs on development costs, with labor being a significant portion of overall costs [35][39] Question: Differences in performance between developed and scattered site homes - Management indicated consistent performance across both types, with expectations for improved retention as communities stabilize [102][103]