Alex Kim

Lacy gave collections guidance, deposit and credit screening statistics, and reiterated 5% to 7% other income growth led by the Sun Belt.

Mike cited multiple positives: very low current and future supply, return to office driving SoMa/Downtown migration, AI growth concentrated in those areas, city vibrancy returning (bars, restaurants, retail), low rent-to-income ratios. Expects continued strength for foreseeable future.

Mike noted 6% of NOI, no downtown exposure, 60% urban/40% suburban. U District strongest followed by Renton and Bellevue. Q4 blends negative 2-3% but January turned positive. Supply declining from 13,000 to 9,000 units. Positive Bellevue job momentum; layoff news not impacting resident base.

Mike detailed other income at 11.5% of revenue ($175M): parking +11% ($1.3M), WiFi +63% ($1.5M), package lockers and pets in low double digits. Slight offset from lower short-term rental and corporate housing activity. Funnel CRM driving transparency and faster decisions, paying dividends on turnover reduction.

Mike highlighted San Francisco (9% of NOI): 97.5% occupancy, 5.5% blends in Q2, concessions at half a week (best in years). Return to office driving SoMa/downtown migration. Currently seeing blends above 6%.

Mike cited deposits up 17%, co-signers up 1%, credit scores up 20 points to 730. Joe quantified $15-20M additional bottom-line opportunity to reach pre-COVID bad debt.

Mike explained Funnel frees team from back-office CRM work to focus on innovation; enables online leasing and omni-channel communication.

Joe noted buyer enthusiasm but seller reluctance limiting volume. Focused on JV with LaSalle, 2-3 year old product with value-add.

Jessett said the development projects are leasing well despite record supply; the Village District deal should stabilize just under 6%, while South Charlotte and another project benefit from construction costs coming in materially below underwriting, with high-5s to roughly 6% stabilized yields expected.

Jessett ranked: buybacks first, then acquisitions/development roughly tied. Below-replacement-cost buying favors acquisitions broadly, but specific sites justify development. Three additional controlled land sites to be purchased and started in 2026. Baker (Denver) math doesn't pencil yet; waiting for improvement.

Jessett confirmed Class A urban outperforming, reversing 3-4 year trend. Urban assets absorbed first wave of supply; second wave now pressuring suburban. Expected to continue through 2026.

Jessett attributed to two factors: SEO costs rising dramatically as more operators compete for placements, and higher traffic generation spend given elevated supply competition. Expected to normalize once supply absorbed.

Jessett noted seasonal pattern playing out normally. Q4 expected slightly stronger than typical due to record supply absorption. Swing from Q1 to peak season more muted than usual but same curve shape.

Campo expects below-replacement-cost buying to persist in Austin/Nashville. Other markets closer to replacement cost. Merchant builders facing bank pressure to sell or refinance.

Jessett noted SFR communities lease slowly but will have sticky tenants. Durham 78% occupied, Woodmill Creek 89%, Longmeadow Farms 53%.

Holder went bucket by bucket across repairs and maintenance, personnel, insurance and property taxes, and quantified the insurance renewal benefit.

Tim reported lease-up velocity improving, especially late Q1 into April. April averaged 23 move-ins per property. Lead volume strong, no signs of slowing, concessions not increasing. Brad on acquisitions: best capital use is not acquisitions currently. Fewer lease-ups being marketed (sellers prefer stabilized for better pricing). Would execute at right price but not seeing compelling opportunities. Direct.

Brad noted increasing deal volume through 2025 as interest rates stabilized. Strong capital appetite for Sunbelt multifamily. Interest rate spreads and cost of capital decreasing. Transaction market expected to be healthy with stable cap rates in 2026. Lease-ups face more uncertainty on underwriting (new lease timing, concession rolloff) which keeps cap rates low for optimistic buyers. Direct.

Tim sees little room for turnover to decrease further or increase meaningfully. Job changes/transfers remain #1 reason for turnover, if that increases, it signals healthy economy with offsetting rent growth benefit. Single-family move-outs unlikely to increase. Expects stable turnover from current levels. Direct and logical.

Tim said supply environment itself not surprising, the surprise was the leasing velocity slowdown and uncertainty in Q2, particularly on the operator side where occupancies were accelerating but operators weren't pushing pricing. A behavioral/sentiment issue rather than a supply surprise. Direct and insightful.

Brad provided strong historical context. Current T12 starts at 1.7% vs 3-3.5% long-term average, declining every quarter. Current demand-supply gap comparable to COVID period (low double-digit NOIs). 2026 delivery levels comparable to post-GFC 2011-2012 (5-6% NOI growth for 4-5 years). Expects recovery acceleration in 2026. Direct with excellent historical framing.

Tim: Dollar gap is ~$130 in April (narrowing). Renewal process involves detailed analysis, customer service, and MAA's sector-leading Google scores. May-June renewals at 4.7-4.8% with record accept rates. Multiple factors beyond street rents drive renewals. Direct.

Asked about LA eviction processing timelines and when the 2026 supply reduction will translate into meaningful pricing power improvement.

Asked whether delinquencies can improve further below pre-COVID norms and how much of the 30 bps other income tailwind is driven by delinquency improvement.

Asked about the decline in year-over-year repair and maintenance costs and whether it can be attributed to lower turnover, and if the trend is sustainable into 2026.

Asked about the widening spread between renewal and move-in rates and whether management expects convergence going forward, signaling interest in market rent growth trajectory.

Barb clarified lower R&M was due to easy Q1 comp, not turnover. Full-year R&M still expected up 2.5-3%. Insurance still down 2% for full year despite tenant litigation elevation.

Angela noted timing depends on market conditions, stronger demand would actually widen the spread, which would be positive. Base case is well-supported by low supply.

Bob confirmed land parcels acquired in Q4 2025 with Atlanta starts planned for Q1 2026. EQR acts as LP with local developers to minimize overhead. Costs relatively steady, yields improving with rent growth. LP capital scarce making EQR more attractive partner with better deal terms. Will remain thoughtful and modest about volume.

Mark said Kirkland development benefited from favorable weather allowing complex excavation work to complete faster than expected. Now into framing and more routine construction phases. Original timeline was an average estimate. Excited about the location and earlier delivery.

Bob noted transaction volume on parity with 2024 (~50% of pre-pandemic levels) but accelerating. Middle-of-fairway assets ($80-100M, relatively new) seeing lots of bidders at ~4.75% caps. Larger or mixed-use assets much less active. Plenty of private capital, fairly liquid and aggressive on pricing. Stock presents better value currently.

Mark noted West Coast residents received 30% cumulative compensation increases since 2019 while rents basically flat. Highly skilled residents with ample room for rent growth. Not seeing any customer stress. Would feel slowdown like all owners but less than many others given portfolio positioning.

Michael described monitoring pricing trends, sequential rent seasonality, retention rates, prospect behavior and decision-making speed. Multiple levers combined to determine whether to favor rate or occupancy. No single metric dominates.

Alex confirmed potential for upside, citing EQR's ability to ramp quickly, did $1.5B in Q3 2024 alone. Excited about merchant-build assets not financed for long run.

Matt confirmed BTR/townhome in 2026 starts pipeline. Discussed yield differentials and favorable operating metrics including lower turnover.

Sean explained widening spread is typical seasonal pattern. Expects the dynamic to normalize heading into 2026 as new lease pricing stabilizes.

Lease-up velocity tracking well with concessions consistent with expectations. Asking rents up ~5% YTD supporting healthy pricing environment.

DFP volume is included in the $1.6 billion target. BTR product operates similarly to garden communities but with different unit mix and amenity packages.