All right, so we just hit on that data point right there from Prequin. Um, fundraising for student housing, first half of the year, $20 billion, highest in a decade. At the same time, if you just do a light Google search, I like to call it a light Google search, you see enrollment in colleges is actually declining.So why is the fundraising going up while the student population appears to be going down. Well, you know, I I think Frank, what's happened is the hidden secret. We you know, Campus Apartments is a ...

Financial Data and Key Metrics Changes - The company reported core funds from operations (FFO) for Q2 2025 at $187.6 million or $1.70 per share, which is $0.01 ahead of prior guidance [14] - Property revenues met expectations, and the company decreased its full-year same-store expense midpoint from 3% to 2.5%, while increasing same-store net operating income guidance from flat to positive 25 basis points [15][16] - The midpoint of full-year core FFO guidance was increased by $0.03 per share from $6.78 to $6.81, marking the second consecutive increase [16][17] Business Line Data and Key Metrics Changes - Rental rates for Q2 showed effective new leases down 2.1% and renewals up 3.7%, resulting in a blended rate of 0.7%, which reflects an improvement from previous quarters [10] - Occupancy averaged 95.6% in Q2, slightly up from 95.4% in the previous year, with expectations to remain stable in the mid-95% range [11] Market Data and Key Metrics Changes - The company noted strong apartment demand, with the second quarter being one of the best in 25 years, supported by wage growth exceeding rent growth for 31 months [6][7] - The DC market showed the highest quarter-over-quarter revenue growth at 3.7%, while LA also performed well, indicating strong demand in these areas [38] Company Strategy and Development Direction - The company is focused on asset recycling, with $139 million spent on acquisitions and $174 million from dispositions, indicating a strategy to optimize its portfolio [12] - The company anticipates better than 4% rent growth in its markets in 2026, with expectations of a return to a more normal growth profile post-COVID [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the operating platform and the ability to maintain performance despite market uncertainties [22] - The company highlighted that the current economic environment has led to cautious behavior among operators, focusing on occupancy rather than pushing for higher rates [33][34] Other Important Information - The company has no significant debt maturities until 2026 and no dilutive debt maturities until 2027, positioning it well for future growth [17] - The customer sentiment score reached a record high of 91.6, reflecting strong resident satisfaction and retention [23] Q&A Session Summary Question: Insights on July data and expectations for the second half - Management indicated that blended rates increased from April to July, with expectations for the second half to be just under 1% [20] Question: Market performance and lease-up trends - Management noted that while some peers are facing challenges, their markets, particularly DC, are performing well with strong demand [31][38] Question: Development outlook amidst economic uncertainty - Management acknowledged a cautious approach to new developments due to market uncertainties but remains committed to starting projects when conditions are favorable [49] Question: Rent growth projections and underlying assumptions - Management expressed optimism about achieving projected rent growth due to strong demand and declining supply, with expectations for 4% growth in 2026 [45][84] Question: Impact of high supply and pricing on future demand - Management believes current demand is sustainable and not being pulled forward due to attractive pricing, as household formation continues to drive demand [68] Question: Renovation strategies and expected yields - The company plans to continue kitchen and bath renovations, expecting an 8-10% return on these investments [74][76]

Industry Overview - The U.S. apartment market demonstrated resilience in Q2 2025, absorbing over 227,000 units, surpassing previous peak leasing periods in 2021 and early 2022 despite economic uncertainties [1][11] - National occupancy rates increased to 95.6%, a rise of 140 basis points year-over-year, indicating strong demand for professionally managed apartments [3][11] - Rent growth remained subdued at 0.19% in June, with operators prioritizing occupancy over rent increases, suggesting a "heads-in-beds" strategy to maintain stability amid high new supply [3][4] Supply and Demand Dynamics - Over 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2 2025, reflecting the market's capacity to absorb new supply [4] - Regional markets such as San Francisco, San Jose, Boston, and New York showed momentum, aided by easing supply and return-to-office trends, while Sun Belt markets like Dallas and Atlanta also exhibited recovery [5] Company Performance AvalonBay Communities, Inc. (AVB) - AvalonBay reported a 3% year-over-year increase in same-store residential revenues for the two months ending May 31, 2025, with occupancy at 96.3% [7][11] - The company is expected to announce Q2 2025 earnings on July 30, with a revenue estimate of $761.75 million, indicating a 4.92% year-over-year increase [8] Equity Residential (EQR) - EQR maintained strong occupancy levels and reported same-store revenue growth in Q1 2025, supported by improving demand and limited resident turnover [9][11] - The company is set to release Q2 2025 earnings on August 4, with a revenue estimate of $769.26 million, suggesting a 4.78% year-over-year increase [12] Essex Property Trust, Inc. (ESS) - Essex benefits from substantial exposure to the West Coast market, which has favorable demographics and high median household incomes, supporting its revenue growth [13][14] - The company is expected to announce Q2 2025 earnings on July 29, with a revenue estimate of $469.19 million, indicating a 6.07% year-over-year rise [15] UDR, Inc. (UDR) - UDR's diversified portfolio and strong demand for rental units position it well for growth, with occupancy nearly at 97% [16][17] - The company is set to announce Q2 2025 earnings on July 30, with a revenue estimate of $422.24 million, reflecting a 2.15% year-over-year increase [18]

Financial Data and Key Metrics Changes - The company reported a healthy first quarter with core FFO per share exceeding the midpoint of guidance by $0.05, driven by a consolidated portfolio performance ahead of plan with same property revenues growing 3.4% year-over-year [11][12] - Blended net effective rent growth was 2.8% for the first quarter, with new lease rates improving sequentially from the fourth quarter [4][11] - Delinquency improved to 1.3% of scheduled rent in Los Angeles, down from 3.9% in the same period last year [4][11] Business Line Data and Key Metrics Changes - New lease rates turned positive in all three major regions, led by Northern California at 1.5%, Seattle at 1.3%, and Southern California at 0.2% [5] - The turnover rate was notably low at 35%, contributing to stable occupancy levels [4] - In April, renewal rates landed in the low fours, consistent with plans, while new lease rates remained steady [36][37] Market Data and Key Metrics Changes - Total new housing supply delivery as a percentage of stock in 2025 is exceptionally low at only 50 basis points in Essex markets, expected to moderate throughout the year [7] - Deal volume in the markets was higher in the first quarter compared to the same period last year, totaling $2.5 billion with cap rates in the mid to high 4% range [8] Company Strategy and Development Direction - The company is focused on reallocating capital into higher rent growth markets and optimizing its operating platform to generate above-market returns [3][4] - The company remains cautious about revising guidance due to macroeconomic uncertainties, particularly regarding U.S. and global trade policies [6][12] - The company is actively pursuing opportunities to enhance shareholder accretion while maintaining a disciplined investment strategy [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the West Coast multifamily fundamentals, stating they are well-positioned for a wide range of economic outcomes due to low supply [7][93] - The company noted that while the tech sector's job growth has been steady, it is closely monitoring potential impacts from macroeconomic changes [21][92] - Management highlighted that the labor market remains soft in Los Angeles, affecting pricing power, and emphasized the need for delinquency recovery to improve occupancy and pricing [60][61] Other Important Information - The company has refinanced the majority of its 2025 debt maturities and maintains over $1 billion in available liquidity [15] - The preferred equity portfolio saw around $27 million in redemptions, with expectations for further redemptions in the upcoming quarters [14] Q&A Session Summary Question: Guidance and Rate Growth - The company confirmed that the original guidance included a slight increase in blended rate growth in the second half of the year, and they remain confident in achieving this [17][19] Question: Impact of Tech Sector - Management indicated that job openings in the top 20 tech companies have remained steady, suggesting continued hiring in the sector [20][22] Question: Occupancy Strategy - The company is maintaining its occupancy strategy while pushing rents in Northern California, with a focus on occupancy in Southern California due to supply dynamics [25][27] Question: Renewal Rates - Renewal rates in April were steady, landing in the high threes, consistent with the company's plans [37] Question: Market Conditions in LA - Management noted that pricing power in LA depends on delinquency recovery and that the labor market remains soft, impacting overall performance [60][61] Question: Development and Investment Strategy - The company is actively looking for new investment opportunities but remains disciplined in its approach, focusing on long-term performance [64][111] Question: Concessions and Loss to Lease - Concessions have improved significantly from the fourth quarter to the first quarter, and loss to lease metrics have also shown improvement [113]