Financial Data and Key Metrics Changes - The company reported blended net rental growth of 3.9%, significantly outperforming the national market, with core FFO per share of $0.20, an increase of $0.03 from the previous quarter [3][5] - Core FFO guidance was raised for the second consecutive quarter to $0.67-$0.68, reflecting a 12.5% increase compared to 2024 [5][23] - Net income available to common shareholders was $0.80 per fully diluted share, compared to a loss of $0.10 in the prior year [17] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [12] - Average revenue per home increased to $4,255, representing over a 40% premium compared to peers [13] - Same store NOI growth was 1.6% year-to-date, with a decrease of 2.7% for the quarter compared to last year [18] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to an influx of new supply [6] - New York City led the nation in rental growth at 4.8%, supported by limited supply and strong demand [7] - The broader New York metro area averaged rental growth of 2.3%, with the Jersey City waterfront maintaining low vacancy levels and rental growth of almost 3% [8] Company Strategy and Development Direction - The company is focused on monetizing select non-strategic assets, having sold or entered contracts for $542 million, raising the target to $650 million [3][4] - The strategy aims to strengthen the balance sheet and reduce net debt to EBITDA, which has decreased by 15% to 10x [3][22] - The company is exploring a wider range of financing strategies to reduce the cost of capital over time [4] Management's Comments on Operating Environment and Future Outlook - Management noted potential headwinds from softening labor markets, declining consumer sentiment, and stricter immigration policies [6] - The company anticipates continued outperformance relative to peers, driven by strategic asset sales and operational efficiencies [4][23] - Management expressed confidence in achieving the same store NOI guidance of 2%-2.8% for the year [23] Other Important Information - The company improved its GRESB score to 90, maintaining a five-star rating and ranking first in its peer group [11] - The company’s properties primarily attract affluent young urban professionals with an average household income of over $480,000 [15] Q&A Session Summary Question: Follow-up on same store guidance ranges - Management explained that Q3 same store NOI growth was impacted by non-controllable expenses and expects to remain within guidance for Q4 due to low expense growth in previous quarters [28][29] Question: Visibility into rental revenue - Management confirmed strong visibility into renewals, with only 0.5% of NOI outstanding to renew, and renewal rates settling around 4%-5% [30][31] Question: Leverage target and future focus - Management indicated that the focus will be on executing the current plan while continuing operational improvements, with potential for further amendments to the plan [34][35] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, while larger assets see a thinner buyer pool, primarily consisting of value-add and opportunistic buyers [36][37] Question: Disposition guidance and asset sales - Management explained that the increase in disposition guidance reflects improved market conditions and ongoing evaluation of alternatives to create shareholder value [41][52] Question: Stock repurchases framework - Management stated that while there is significant value in the company, the priority is currently on deleveraging rather than stock repurchases [43][45] Question: Pricing on asset sales - Management confirmed that the pricing on sold assets met expectations, with a blended cap rate of around 5.1% [50]

Financial Data and Key Metrics Changes - The company reported a blended net rental growth of 3.9%, significantly outperforming the national market [3] - Core FFO per share increased to $0.20 for the quarter, up $0.03 from the previous quarter, and guidance for the year was raised to $0.67 to $0.68, reflecting a 12.5% increase over 2024 [5][22] - Net income available to common shareholders was $0.80 per fully diluted share, compared to a loss of $0.10 in the prior year [17] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [12] - Average revenue per home increased to $4,255, representing over a 40% premium compared to peers [12] - Occupancy rate was 95.8% excluding Liberty Towers, and overall occupancy was 94.7% [13] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to new supply [5] - New York City led the nation in rental growth at 4.8%, with limited supply driving robust demand [6] - The Jersey City waterfront maintained low vacancy levels and rental growth of almost 3%, reflecting strong demand [8] Company Strategy and Development Direction - The company is focused on monetizing non-strategic assets, raising its sales target from $500 million to $650 million [3][4] - The strategy includes reducing net debt to EBITDA, aiming to reach below 8 times by the end of 2026 [4] - Continued investment in technology to enhance operational efficiency and customer experience [15] Management's Comments on Operating Environment and Future Outlook - Management noted potential headwinds from softening labor markets and declining consumer sentiment [5] - The company anticipates that the New York City demand-supply imbalance will continue to fuel sustained demand for housing [9] - Management expressed confidence in achieving the same store NOI guidance of 2% to 2.8% for the year [23] Other Important Information - The company improved its GRESB score to 90, maintaining a five-star rating and ranking first in its peer group [11] - Year-to-date controllable expenses grew by only 1.9%, well below inflation [15] Q&A Session Summary Question: Follow-up on same store guidance ranges - Management explained that Q3 same store NOI growth was impacted by non-controllable expenses and expressed confidence in staying within guidance for Q4 [28][29] Question: Visibility into rental revenue and expirations - Management confirmed limited exposure in Q4 and strong visibility into renewals, with renewal rates around 4% to 5% [30][32] Question: Leverage target and future focus - Management indicated that the focus will remain on executing the current plan while evaluating operational initiatives [34] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, while larger assets have a thinner buyer pool [36] Question: Disposition guidance and asset sales - Management clarified that the increase in sales guidance reflects improved market conditions and ongoing evaluations of asset sales [40][50] Question: Share repurchase framework - Management stated that while share buybacks are seen as valuable, the priority is currently on deleveraging [42][44] Question: Transaction market activity - Management observed early signs of renewed interest from Core Plus Capital, indicating a potential shift in market dynamics [51][52]

Financial Data and Key Metrics Changes - Revenue increased by 2.7% compared to Q1 2024 [14] - FFO decreased to $0.40 per share, and AFFO decreased to $62.3 million [14] - Same property cash NOI was essentially flat [14] Business Line Data and Key Metrics Changes - The company signed over 300,000 square feet of new leases, with total leasing reaching just under 800,000 square feet [5][12] - New leasing to tenants over 10,000 square feet was well above historical averages [5] - The residential portfolio maintained a high occupancy rate of 99.1% with strong demand [13] Market Data and Key Metrics Changes - The Class A office portfolio maintained stable in-place and asking rental rates despite a higher vacancy market [6] - The multifamily portfolio experienced robust revenue growth, reflecting the appeal of high-end residential communities [6] Company Strategy and Development Direction - The company is focused on four avenues to restore and exceed pre-pandemic FFO: leasing existing office portfolio, redeveloping Barrington Plaza, converting Studio Plaza to multi-tenant use, and acquiring additional properties [7] - The company is optimistic about below-average office expirations in 2025 and 2026 [6] - A conservative financing strategy and a diversified tenant base are emphasized to manage through economic turbulence [8] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential economic slowdowns and the impact of higher interest rates on income [7][8] - The operating platform is built to withstand economic challenges, with a focus on quality buildings in supply-constrained markets [8] - Management remains cautious but optimistic about leasing activity and demand in the multifamily sector [6][35] Other Important Information - The company closed a non-recourse interest-only loan of $127.2 million at a fixed rate of 4.99% [11] - A $335 million secured office loan was refinanced at an effective fixed interest rate of 4.57% [11] Q&A Session Summary Question: Can you provide more detail on leasing and larger tenants? - Management noted strong demand across various industries, with positive absorption contributing to improved leasing metrics [19][20] Question: What are the pricing trends in multifamily? - Management clarified that asking rents have not changed since before the fire, but occupancy remains high, contributing to revenue growth [21][22] Question: Can you discuss the debt refinancing and rates? - Management indicated that securing loans has been challenging, but they are optimistic about achieving favorable rates for upcoming refinancings [28][30] Question: How is the absorption rate in the in-service portfolio? - Management acknowledged that while the overall portfolio shows positive absorption, the in-service portfolio's occupancy has slightly decreased [32][34] Question: Have you seen tenant fallout from macroeconomic uncertainties? - Management reported no significant impact on tenants from current economic conditions, but they are monitoring the situation closely [38][39] Question: What is the status of the Studio Plaza leasing? - Management confirmed that leasing demand and speed have exceeded expectations, with ongoing efforts to achieve reasonable occupancy levels [56][58] Question: What is the outlook for acquisitions? - Management expressed a focus on high-quality office buildings for future acquisitions, indicating a preference for the office market over multifamily at this time [70] Question: Can you comment on capital allocation for acquisitions versus share buybacks? - Management stated that while they have engaged in share buybacks, they prioritize direct acquisitions and include partners in opportunities to maintain relationships [74][75]