John Kim

Burns said the book was strategically resized to $100 million, not exited, and could grow selectively.

Kleiman rejected the premise of a strategy change and reframed around revenue maximization and turnover cost.

Noted AI hasn't been mentioned on the call and asked whether ESS is a direct or indirect beneficiary of AI job growth. Also asked about lease growth cadence under the new all-lease methodology and whether the steeper seasonal drop-off will repeat.

Noted AI hasn't been mentioned on the call and asked whether ESS is a direct or indirect beneficiary of AI job growth. Also asked about lease growth cadence under the new all-lease methodology and whether the steeper seasonal drop-off will repeat.

Asked about cadence of new lease growth expectations for 2026 and whether January data is relevant. Probed whether the SoCal-to-NorCal capital reallocation trade is still the priority or if management is becoming more agnostic. Pressed on what cap rate gap would change the calculus.

Asked about cadence of new lease growth expectations for 2026 and whether January data is relevant. Probed whether the SoCal-to-NorCal capital reallocation trade is still the priority or if management is becoming more agnostic. Pressed on what cap rate gap would change the calculus.

Asked about cadence of new lease growth expectations for 2026 and whether January data is relevant. Probed whether the SoCal-to-NorCal capital reallocation trade is still the priority or if management is becoming more agnostic. Pressed on what cap rate gap would change the calculus.

Asked for Q3/Q4 blended cadence split and 2026 earn-in expectations. Also probed whether immigration policy has had any direct or indirect impact on LA demand.

Asked for Q3/Q4 blended cadence split and 2026 earn-in expectations. Also probed whether immigration policy has had any direct or indirect impact on LA demand.

Barb noted blended growth approximately 3% in both halves with Q2 and Q3 expected highest, opposite pattern from total revenue growth.

Rylan described strong demand from biotech workers, higher rent market with discount to San Francisco proper, and limited future supply outlook.

Barb noted ten-year unsecured and five-year agency paper both in mid-fives, consistent with most of 2024.

Barb explained 50 bps delinquency improvement in 2025 guidance includes 20 bps from Q4 accounting charge and 30 bps cash improvement, targeting pre-COVID 40 bps by H2.

Lacy attributed the spike to a single property maturing and a prior-year tax appeal, stating broader San Francisco expenses are not elevated.

Toomey emphasized 2-year research process identifying high net worth and family office demand for frequent distributions. Part of broader retail shareholder campaign. Dave added multifaceted outreach plan. On size: growing accretively is critical, not size itself, a bigger company doesn't necessarily attract better investors.

Mike confirmed Q4 came in as communicated. October was demand trough with concessions rising, enabling occupancy build to 97%. From that position pushed renewal growth at 5.5-6%, achieving within 50-80 bps of send-out. February trends also positive.

Toomey reframed: not market-level decisions but individual asset recycling across 180+ properties. D.C. assets also among 6 dispositions in market. Chris Van Ens clarified NY exits were specific situations (One William was NJ with rent control, Brooklyn was 100% rent-stabilized). Columbus Square: JV partner marketing its stake, UDR not a buyer, will continue managing.

Joe noted lender extensions preventing expected distress wave. Not seeing developers forced to transact. JV with LaSalle focused on workforce housing with value-add nature, potentially contributing more UDR assets.

Mike acknowledged new lease softness in D.C. but countered with 5.5-6% renewal growth, 97%+ occupancy, 3% blends still holding in July, and 10%+ other income growth driving total revenue outperformance.

Tom confirmed April 2.5% blends through Q2 hits top end of first half target; new lease growth turning flat as expected.

Joe confirmed on track with high single to double-digit other income growth; turnover down 300 bps providing additional benefit.

Chris confirmed Costa-Hawkins applies (no vacancy control). Also flagged Washington state bills and California state-level rent freeze risk.

Mike detailed margins: Wi-Fi ~70% ($70 charge, $20 cost), parking near 100%, short-term furnished lower. Repeated 8% 2024 growth.

Mark said 14% NY allocation feels right. More in trading mindset, may buy or sell. Urban portfolio is uniquely positive vs peer group. Bob noted they underwrote recent NY trades but didn't bid, assets had more retail, tax abatement burn-off complexity than EQR's straightforward Manhattan portfolio.

Michael said net effective pricing continuing to grow. Expects each month to sequentially build, putting Q2 closer to flat rather than ending at -1%. Not materially different from April but continued momentum of improving new lease change.

Michael clarified the -4% refers to the district micro submarket only (excluding Maryland and Virginia portfolios). It is a spot pricing trend comparison, today's net effective rent vs same day last year. Confirmed pricing trends are a leading indicator for where blended rates will go, putting pressure on quoted renewal offers.

Mark acknowledged current pricing (4.75-5% caps, premiums to replacement cost) not attractive for expansion market acquisitions. Buyback improves forward growth rate and reduces expansion market percentage. Will hit expansion accretive opportunities but won't force timeline. Comfortable standing still or buying own stock when external opportunities are unattractive.

Michael confirmed Q3 guidance midpoint of 2.5% mirrors YTD blend. Expects Q4 deceleration to bring full-year blend to 2-2.5%, about 20-30bps below original 2.5% midpoint.

Alec said they are looking at all markets but want to balance portfolio. Would need compelling opportunity to increase in markets with good existing exposure. Cap rates around 5% broadly, 4.75% in some expansion markets where buyers perceive more recovery upside.

Michael confirmed some Q4/Q1 occupancy lean-in affected Boston new lease change. Expansion markets still defensive at 95.5% occupancy. LA pockets near supply also leaning into occupancy.

Michael confirmed lease breaks rose from 12 at Investor Day to 28 over two-plus months, described as normal levels, not signaling any concern.

Michael explained seasonal negative new lease change in Q4/Q1 is normal and pulls down full-year average even with strong mid-year pricing.

Michael noted fire-driven demand spike in 2-3BR units in Ventura County, Glendale/Pasadena, and West LA. Occupancy ticked up to 95.8% in Q4.

Peter said it means both: flexibility on economics and meeting tenant requirements like larger TI packages and free rent, though free rent concessions appear to be bottoming. Lower rents also mean lower capital requirements.

Joel said they are pivoting daily on CapEx savings and capital raising rather than changing plans. Peter pointed to a large JV taking longer and buyer financing being available but slower, without laying out an explicit Plan B.

Marc declined 2027 guidance but laid out the framework: basis declines from $6B+ to ~$4.5-4.6B in Q4, with additional 2027 milestones on land and 5 projects under evaluation. 421 Park Drive is the biggest variable.

Joel clarified the Q2 indication is not formal guidance but noted they wouldn't give direction unless they felt comfortable. Declined to comment on composition or pipeline beyond Q2.

Peter outlined $200M under contract/PSA, $580M held for sale. Near-term closings include an investment fund purchase and 2 residential conversions. Over 55% of available land has residential zoning. Disposition closings weighted Q2-Q4 with weighted average in Q3.

Marc confirmed still tracking within the Q4 2026 range and that it represents the trough for 2026. Joel noted it provides a good base run rate to think about, but declined to give 2027 guidance.

Marc walked through each vacate: 138K sqft software company in Greater Stanford (planned redevelopment), 118K sqft pharma subsidiary in Torrey Pines that consolidated to Campus Point, 83K sqft pharma subsidiary that expanded at SD Tech, and older Cambridge product acquired in 2016. Joel noted LOIs signed for 83K sqft and ~40% of the 118K sqft.

Marc explained 2026 construction spend driven by finishing the active pipeline (80% leased deliveries) plus higher CapEx for repositioning vacant space. Referred to Page 46 pie chart for cap interest rolloff scenarios.

Argo pointed to lead and visit volume, locked-in renewal rates, on-book August/September new leases, and easier prior-year comps rather than restating the guide.

Brad provided multiple reasons: protecting earnings quality without volatility, satisfied with market/geographic diversification, selling 30-year-old properties is the right strategy, taxable gains on old assets are sizable requiring 1031 exchanges, and redeployment into sub-5% acquisitions is too aggressive. Prefers measured approach recycling into newer assets. Direct and thorough.

Tim clarified Atlanta comment, most improvement from prior year, but still lagging portfolio overall. Not concerned about migration; 10-11% of move-ins from outside footprint, only 4-5% move-outs leaving, net +5-7% in-migration very steady. Direct.

Tim confirmed July trending better than both Q2 and June specifically. July is the best new lease pricing month of the year on an absolute basis. Still expects normal seasonality with Q4 blended lower than Q3. Direct.

Tim: $1-1.5M revenue from 27 WiFi projects in 2025 (small). Full rollout of those 27 would contribute ~$6M once complete. Multi-year project over 4-5 years for most/all of portfolio. May accelerate in 2026. Direct.

Clay: Beyond seasonal rent acceleration, lease-up properties gaining velocity with pricing ahead of pro forma will contribute on both pricing and NOI yield basis. Direct.

Tim: Gain to lease ~1% currently, typical seasonal widening. January market rents ~0.5% above December. Full-year new lease -1.5% should correlate well with market rent growth. Direct.

Tim highlighted two buckets: (1) Current strong performers, DC, Houston, Charleston; (2) Trending improvement, Tampa, Orlando showing better traction. Austin remains laggard. 13 markets had positive blended in January. Direct.

Clarified the yield basis and gave the 8%-plus development hurdle, with 343 Madison at 7.5%-8% and D.C. deals penciling over 8%.

Doug confirmed the 27% under negotiation involves multiple tenants with a mix of consolidation and growth. Did not identify specific tenants despite media speculation.

Mike confirmed Q4 2026 is a good starting point for 2027 with more growth in back half than first half. Doug emphasized 2026 expirations already covered by signed leases, expects similar dynamic for 2027. Both expressed bullishness about earnings growth from same-store occupancy and development deliveries.

Doug explained AI demand concentrates south of Mission in low-rise buildings vacated by tech companies, not in towers like Embarcadero Center. 680 Folsom with 35K sq ft floors and 16-foot ceilings is the AI play. Rod noted Salesforce's $15B commitment is meaningful as the city's largest private employer.

Mike explained imputed capitalized interest uses 7.5% blended equity/debt rate over 4-year development period. Actual may be less depending on capitalization. Multiple funding sources: asset sales, private equity, public equity, dividend reset, construction debt.

Doug noted BXP is more than halfway to its 3M sq ft target on vacant/expiring space with pipeline covering an additional 1.7M sq ft. Emphasized tracking leased square footage rather than quarter-to-quarter occupancy.

Doug explained later-stage life science companies raising capital for proven products prefer office over lab. Rod noted office-focused life science demand typical in South San Francisco. Bryan said 3-4 situations in urban edge Boston.