Financial Data and Key Metrics Changes - The company reported Core FFO per share of $0.47 and AFFO per share of $0.38 for Q3 2025 [19] - Same-store NOI growth was 1.1% for the third quarter, which is typically the most modest growth period due to elevated seasonal turnover [15] - The company raised its full year 2025 guidance, increasing the midpoints for Core FFO and AFFO by one penny each to $1.92 and $1.62 per share, respectively [21] Business Line Data and Key Metrics Changes - Same-store renewal rent growth was 4.5%, which is 30 basis points higher than the same period last year [7] - New lease rent growth was slightly negative at -2.9% due to elevated supply in select markets [14] - Blended rent growth for the quarter was 3% [14] Market Data and Key Metrics Changes - Average occupancy for Q3 was 96.5%, consistent with expectations [13] - Preliminary same-store results for October showed occupancy averaging approximately 96% [15] - Renewal spreads in October remained strong at 4.3% [15] Company Strategy and Development Direction - The company is pursuing channel-agnostic, location-specific growth focused on long-term total returns through home builder partnerships, month-end inventory, construction lending, and third-party management [8] - The capital allocation framework aims to fund organic growth, invest in high-return opportunities, and maintain a strong balance sheet [9] - The company plans to leverage its share repurchase program as part of its disciplined capital allocation strategy [19] 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 and healthy demographics [9] - The company is optimistic about the potential for lower mortgage rates to increase liquidity and transaction volumes in the housing market [9] - Management noted that the current landscape presents both opportunities and challenges, emphasizing a customer-centric approach and operational excellence [12] Other Important Information - The company will host an Investor Day on November 17th to provide deeper insights into its strategy and growth initiatives [10] - Total available liquidity at the end of the quarter was $1.9 billion, providing financial flexibility [17] Q&A Session Summary Question: Supply outlook for 2026 regarding BTR deliveries - Management noted that the supply backdrop is nuanced by market, with some markets like Florida and Atlanta showing positive signs, while others remain competitive [24][26] Question: Concerns about occupancy and guidance for Q4 - Management confirmed that the occupancy dip was expected and emphasized the strength of the renewal business, which accounts for over 75% of their book [30][32] Question: Negotiation tendencies of tenants in BTR communities - Management acknowledged that tenants do negotiate on renewals, but they do not see a significant difference in behavior between BTR and scattered site portfolios [35] Question: Impact of home builders' inventory management on business - Management observed softening demand among home builders but noted that they are managing inventory better and are optimistic about production in 2025 [39] Question: Capital allocation and acquisitions guidance - Management indicated that acquisitions are driven by builder relationships and opportunistic buying, with a focus on maintaining a balanced approach to capital allocation [43][48] Question: Demand drivers and pricing power - Management expressed confidence in demand for single-family homes, noting consistent website traffic and a healthy customer profile [64] 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 closer to long-term averages [67][71] Question: Performance of non-same-store acquisitions - Management stated that homes acquired in 2022-2023 may have more challenges in aligning with margin expectations due to market conditions at the time of purchase [80] Question: Public versus private market valuation disconnect - Management acknowledged frustration with the valuation disconnect and emphasized a disciplined approach to capital recycling and shareholder value creation [84]