BSR REAL ESTATE INVESTMENT TRUST (TSX:HOM) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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Summary
HOM.UN reported a sequential increase in same community NOI by 11% from Q4 2025, driven by expense normalization.
The company is ramping up bulk Internet and valet trash initiatives, which are expected to drive organic growth.
Occupancy for the August 2025 acquisition increased to 73.1%, with further leasing expected to stabilize it by July.
FFO was up 29% sequentially to $0.18 per unit, despite a year-over-year decrease due to higher borrowing costs and other expenses.
Management reiterated guidance for 2026, projecting FFO per unit of $0.75 to $0.79 and AFFO of $0.68 to $0.74, reflecting optimism in market conditions and strategic initiatives.
Full Transcript
OPERATOR
Good morning, My name is Regina and I will be your conference coordinator today. At this time I would like to welcome everyone to The BSR REIT First Quarter 2026 Financial Results Conference call. All lines have been placed on mute to prevent any background noise. After management's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the conference over to Spencer Andrews, Vice President of Investor Relations and Marketing. Please go ahead sir.
Spencer Andrews (Vice President of Investor Relations and Marketing)
Thank you and good morning everyone. Welcome to BSR REIT's conference call to discuss our financial results for the first quarter ending March 31, 2026. I'm joined on the call today by our CEO Dan Oberst, our Chief Financial Officer Tom Service, and our Chief Operating Officer Susie Rosenbaum, who are all available to answer your questions after our prepared remarks. Before we begin, I want to remind listeners that certain statements made on this conference call about future events are forward looking in nature. Any such information is subject to risks, uncertainties and assumptions that could cause actual results to differ materially. In addition, we will reference certain non GAAP financial measures that we believe are useful supplemental information about our financial performance. For more information, please refer to the cautionary statements on forward looking information and a description of our non GAAP financial measures in our news release and MD&A dated May 13, 2026. Dan, over to you.
Dan Oberst
Thanks Spencer. We believe that the first quarter marks the beginning of a period of significant momentum for BSR REIT. Our same community NOI and NOI margins strengthened sequentially from the fourth quarter of 2025 and we've made progress in bringing our 2025 acquisition class to stabilization including further lease up at The Ozby, our August 2025 lease up acquisition. We also continued to ramp up our bulk Internet and valet trash initiatives, two key drivers of organic growth and externally rental market dynamics shifted further in our favor. Recap the first quarter, same community NOI increased 11% from Q4 last year due largely to the normalization of expenses which had an outsized adverse impact on Q4 of last year. Same community weighted average occupancy ended the quarter at 94.3% flat to the end of 2025. Same community blended rates improved 30 basis points in Q1 from Q4 and I would add that this trend continued in April improving another 80 basis points versus Q1 results. Our retention rate was 59.8% at quarter end, a 30 basis point expansion from the end of 2025 and a significant increase from 56.9% a year earlier. Physical occupancy at our August 2025 lease up reached 73.1% at the end of March, up from 70.4% at the end of December. And importantly, we began the ramp up of bulk Internet at five of our properties in earnest, which is already showing positive results in our other income line item. The results we posted last night reflect the exact momentum we spoke to last quarter and underlie the fundamental shift we see in our business. I will remind everyone that our December investor presentation laid out and provided transparency on our organic growth plans. Yesterday's results also reflect the very early innings of those returns. While there's still a lot of upside in each of the initiatives we laid out, I'm proud of the tangible progress we've made to date. Even more encouragingly, fundamentals continue to improve in our core markets. Trade-outs were once again improved year over year and have demonstrated largely positive momentum. Frankly, the months of May and June will tell us a lot more about the exact extent of the health of the multifamily market. But sitting here today, we're generally encouraged by the results to date. Given our hand selected high quality portfolio, our value adding lease up and our operational enhancement initiatives and a total absent of debt or swap maturities this year, we are in an ideal position to drive growth on a per unit basis as market conditions steadily improve. As we always have, we'll keep focusing on what we can control and carefully allocate capital to its best use to deliver the strongest possible returns. I will now invite Tom to review our first quarter financial results in more detail.
Tom Service (Chief Financial Officer)
Tom thanks Dan. Our operational performance in the first quarter met our expectations and as Dan highlighted, demonstrated substantial improvement on a sequential quarterly basis. While the pace of this quarter over quarter improvement will obviously slow, we expect this positive momentum to continue as we keep moving ahead with the lease up and operational enhancements that we have discussed at length. Beginning with leasing, effective rates on new leases declined by 5.4% in the quarter while renewals increased by 2.3% in the quarter resulting in a blended rate reduction of 1.0%. That represented an improvement of 30 basis points in the blended rate compared to the fourth quarter. To put that number in more perspective, on a year over year basis, blended rates improved by 220 basis points. Similarly, our April 2026 rates improved 80 basis points relative to our April 2025 results. This along with several other operational indicators gives us confidence that rates are generally moving in a positive direction, certainly compared to last year's operating environment.
Tom Service (Chief Financial Officer)
Same community revenue ultimately decreased by 1.6% compared to Q1 last year, primarily driven by the lower average occupancy and the lower average monthly in place leases that I just spoke to. Lower rental income was partially offset by an increase in other property income of $0.2 million driven by higher utility reimbursements and the beginning of our rollout of bulk Internet. Same community NOI for Q1.26 was $14.1 million, a 4.7% decrease from last year, but 11% sequential increase from Q4.
Tom Service (Chief Financial Officer)
The year over year decline was attributable to the lower revenue I just described an increase in utility expenses of $0.2 million and higher overhead and administrative costs of $0.3 million related to our strategic decision to retain overhead. These factors were partially offset by a decrease in property insurance expenses of $0.2 million. Importantly, the sequential improvement was driven primarily by a normalization of the expense load in the first quarter relative to the confluence of anomalies we faced in the fourth quarter on the expense side. More directly, real estate taxes improved as our typical levels of refunds returned, improvements in turn and repair and maintenance costs driven by a higher retention flow through and lower administrative and utility expenses. A quick side note before moving on and appreciating the quarter over quarter movement in our taxes was historically challenging to the cipher on our financials. We've sought to increase transparency in our MDA this year via breaking out refunds as a separate line item in the disclosure package.
Tom Service (Chief Financial Officer)
This change will hopefully allow all stakeholders to better appreciate and explain the quarterly changes in this key figure below. NOI G&A expense increased by $0.4 million year over year due primarily to higher legal and professional fees as well as payroll expenses. Sequentially, G&A was essentially flat. Finally, net finance cost declined by $1.2 million year over year, primarily related to the 2025 strategic disposition of assets. Overall, Funds From Operations (FFO) in Q1 26 was up 29% to $0.18 per unit compared to $0.14 per unit in the fourth quarter.
Tom Service (Chief Financial Officer)
I'm happy to report that the 2025 asset rotations continue to gain momentum and are now accretive relative to our dispositions made during the year. Despite our August lease up acquisition sitting at essentially break Even at only 73% physically occupied, the contribution of our results from the 2025 acquisitions cohort should only improve throughout the balance of 2026. The year over year decrease in Funds From Operations (FFO) per unit was Primarily driven by three items higher borrowing costs of $0.03 per unit, lower same community results of $0.01 per unit and higher G&A of $0.01 per unit.
Tom Service (Chief Financial Officer)
Sequentially same community improvements added $0.03 per unit and non same community added nearly $0.02, slightly offset by $0.01 related to headwinds in borrowing costs. AFunds From Operations (FFO) was $0.17 per unit for the first quarter, 55% higher than the $0.11 per unit in Q4. To state the obvious, the sequential and quarterly improvements are highly encouraging and demonstrate our momentum in driving organic growth. Moving to the balance sheet the REIT's debt to gross book value as of 3-31-26 was 52% compared to 51.2% at the end of 2025. This amounts to $738 million of debt outstanding with a weighted average interest rate of 4.1% and a weighted average term to maturity of 3.7 years. Total liquidity was $67.3 million at quarter end, including cash and cash equivalents of 7.4 million and 59.9 million available under our revolving credit facility. And as usual, we have the ability to obtain additional liquidity by adding unencumbered properties to the current borrowing base of the facility.
Tom Service (Chief Financial Officer)
On March 10, 2026, we refinanced a $28 million mortgage onto the REIT's credit facility and as a result the REIT has no remaining 2026 maturities. Importantly, subsequent to quarter end we locked in the REIT's cost of credit for for the balance of 2026 we have $175 million swap which amended two previously outstanding swaps at a rate of 2.98%. And finally, as you're likely aware, we are reiterating our original 2026 earnings and same community portfolio guidance that we provided in March.
Tom Service (Chief Financial Officer)
It calls for full year ffo per unit of 75 to 79 cents or 77 cents per unit at the midpoint and full year AFunds From Operations (FFO) of 68 to 74 cents per unit or 71 cents per unit at the midpoint. This guidance assumes 50 to 150 basis points of same community revenue growth, 100 to 200 basis points of same community property operating expense and real estate tax growth amounting to 0 to 100 basis points of same community NOI growth. We continue to expect our core real estate business to be healthy as we continue building revenue from our lease up activity along with marginal additional overhead costs.
Tom Service (Chief Financial Officer)
We will update this guidance as needed throughout the year I will now turn it back to Dan for his closing remarks.
Dan Oberst
Thanks, Tom. We are increasingly excited about our business outlook. The asset rotations we completed last year, along with our subsequent stabilization efforts, have obviously caused volatility in our short term financial performance, but they put us in an increasingly strong competitive position to benefit from positive rental market fundamentals. Obviously, the focus on the last couple of years has been on the increased multifamily apartment supply in the Texas Triangle.
Dan Oberst
The absorption process persisted longer than we would have hoped, but here's what we're looking at now. After peaking in 2024, new apartment deliveries declined by 25% to 50% last year across Austin, Dallas, and Houston. In 2026, deliveries are projected to drop by a further 43% in Austin, nearly 30% in Dallas and 7% in Houston. Another 40% decline is expected in Austin in 2027. There's minimal new product coming and high development costs all but ensure that we won't get a surprising surge of new construction. Demand, meanwhile, continues to be very strong. Our three Texas markets have been among the leaders in supply absorption among all MSAs in the United States. Their economies are strong and housing is highly affordable, which has made them magnets for migrants from other states and other countries. Texas added more residents in 2025 than any other state. Population growth has been notably strong in the age of the 20 to 34 cohort, which has the highest propensity to rent of any demographic.
Dan Oberst
You'll recall that back in December we laid out a plan to drive incremental organic growth in FFO per unit of approximately $0.13 to $0.22 from 2026 to 2028. That plan remains entirely on track. All of these initiatives are entirely independent of what happens in our broader rental markets when you combine them with the anticipated turnaround in rental rates due to rapidly improving supply demand fundamentals, we believe that we are in a position to drive very strong returns for unitholders. That concludes our prepared remarks this morning. Tom, Susie and I would now be pleased to answer your questions. Please open the line for questions.
OPERATOR
We will now begin the question and answer session. To ask a question, press Star, then the number one on your telephone keypad. Please pick up your handset and ensure that your phone is not on mute when asking your question. Our first question will come from the line of Jimmy Shan with RBC Capital Markets. Please go ahead.
Jimmy Shan (Equity Analyst)
Thanks. So, just a question. On the lease spreads,, you know, the sequential improvement that you're seeing, would you say that's more than the typical seasonal uptick that you'd see as you enter the spring leasing season, actually seeing improvement in market rents. I guess that would be number one. And then two is sort of the retention rate. Did that sustain into April and what were your expectations for the summer?
Dan Oberst
Yeah. Hey, Jimmy. So first, let's talk about the trade outs in April versus the end of Q1. You're right. The blended rate went up 0.8%. We think that is a true turn to seasonality. You can also well may thus far is holding up about the same. The second question that you had was about. What's your second question? Sorry, Retention. Retention rate. Yeah, 60% roughly at the end of Q1. We're looking the same now too. Why is that? Basically less people are moving out to buy homes. The stats here are looking pretty good. It was about 11.6% the end of Q1 compared to 12.1% in Q4 and almost 14% in Q1 of 2025. People, you know, if they can't afford to buy a home and either have to rent or want to continue to rent. Right. They have several choices. They can incur the cost to move or they can stay put if they like the services they're giving. I think that our teams, our operations team are really good at delivering excellent service and people are choosing to stay with us.
Jimmy Shan (Equity Analyst)
Okay, sorry, those stats that you just quoted, 11.6 versus 12.1. What was that again? That's the percentage of tenants moving out to buy a home. Buy home. Okay, got it. Okay, thank you.
OPERATOR
Our next question will come from the line of Brad Sturges with Raymond James. Please go ahead.
Brad Sturges (Equity Analyst)
Hey there. Just following on Jimmy's question there. It sounds like you're cautiously optimistic about the sort of the demand trends you're seeing. Just how would things, how are things trending this year versus what you would have saw last year? And then you know, just maybe a broader comment around which. Which markets you're seeing kind of better demand trends in right now. It seems like it might be Dallas is, given what you're doing on the right rate side. But curious to get your thoughts.
Dan Oberst
Hey, Brad, this is Dan. You know, I've seen a few of these leasing seasons and cycles in Texas in particular. And I would say the last two years were somewhat. Were anomalies. So two years ago, everyone recalls we had a massive spring leasing season throughout the sector and we saw a significant amount of absorption and it really gave everyone in the industry some real positive feelings about lease ups. Now you move forward to last year. You had another strange thing happened and you had Really a buildup in January and February that looked to be a very promising leasing season. And then I guess you can time it on the watch with the Tax Day, whatever it's called in the US but really just right after that, what's the name of it? Tax Day, I think is what they call it on Fox News. Right after that Tax Day occurred. I think what we all saw throughout the sector was really a massive chilling effect on the leasing season. Right. And we all saw what happened last year. I think the last two years were abnormal. We haven't seen leasing seasons like the last two years on different levels of the extreme. And I think you're right to characterize us as cautiously optimistic because what we're seeing right now looks like a traditional leasing season. It looks like the leasing velocity, the asking rents, the effective rents, very predictable. You know, the 17.5% or so of our apartments that either renew or lease throughout this Q2, we see traditional and positive momentum there. So we don't see evidence of either extreme as of today. That's leaving us fairly cautiously optimistic about, I think, the path of our same store portfolio. And I look forward for the rest of the year.
Brad Sturges (Equity Analyst)
That's great. And I guess my other question would be I really appreciate the breakdown on the real estate tax and the breakout of the refunds. Just as a reminder, when you put out the guidance ranges, how do you account for refunds within your guidance? Is that included? Or would that, depending on how the refunds come in, that would be incremental to the guidance? Yeah, no, it's included.
Tom Service (Chief Financial Officer)
Brad, this is Tom. It's included in the guidance. Again, as we say often, real estate taxes in Texas are hand to hand combat every single year. When we're budgeting and thinking about our guidance at the beginning of the year, we really lean on our third party experts, our consultants that we help that help us litigate taxes and work on the refunds and their assessment of where we think we're going to land. And then we use our 30 years of operating history to make a judgment call on what we believe is a realistic outcome and that is actionable. And we budget and guide accordingly. So the guidance reflects all of that. Okay, appreciate that. I'll turn it back.
OPERATOR
Our next question comes from the line of Jonathan Kelcher with TD Cowan. Please go ahead.
Jonathan Kelcher (Equity Analyst)
Thank you. On the 13 to 22 cents that you guys expect to get over the next three years, how much or any of that was in Q1? And can you remind us what you expect for 20, 26 and 27,
Tom Service (Chief Financial Officer)
sure. So first let's start with our the non same store portfolio. It looks like we leased between 70 and 80 more units after Q4 in Q1, which gave us about $100,000 in additional revenue. Now you got to remember that's not the fully loaded amount. Why? Because we're leasing over the quarter. So that should contribute a little over $300,000 for those additional units in Q2 and then in quarters forward. You also have to remember that we're going to continue leasing as we move forward throughout the year. The other piece of it is our August acquisition which is in lease up. We ended the quarter at 73% physical occupancy. We expect that one at the latest by July to be physically stabilized. That's physically though we still then will continue to burn off concessions, which is the second bite of that, so to speak. So that would be over the next year as well before that one gets to true stabilization. Also bulk Internet, there you go. So we brought online the first five that we started in 2025. As I've said before, Q1, there's not a contribution really to revenue there because we're in the ramp up period. However, by the end of the year we would expect to have a net $400,000 in additional revenue in 2026 related to the bulk Internet project. Now as Alice said during our last call, however, we're going to recognize on 70% of total realization for those who are bringing online this year too, which is the remainder of the portfolio in 2027 and then the tail of it in the first quarter of 2028.
Jonathan Kelcher (Equity Analyst)
Okay, so sounds like not a ton yet. And it's going to continue to build with a bigger portion, the biggest portion I guess coming on next year. Is that fair? Right. Okay. And then secondly Dan, probably for you just on capital recycling, are you seeing right now any opportunities to sell assets and redeploy into new opportunities?
Dan Oberst
Yes, right now Jonathan, we don't have anything in our guidance related to dispositions or acquisitions. I think my sense of the market is that we're seeing some transaction volume in our markets, several billion dollars of. But in speaking with the buyers and sellers, capital feels threatened and lower transaction velocity makes sense. We kind of see this as transitory and prefer to transact specifically on the sell side in markets where capital doesn't feel threatened and where transaction volume is heightened. So there's some read throughs on some low caps, but the buyer pool is generally smaller, not institutional grade. And I think I'm going to blame this entirely on the volatility in credit spreads. If the buyer's pool is leading, if the private buyer's pool is leading on the acquisition front right now in our markets, Jonathan, then they're going to be more highly reliant on the interest rate curve. And I think we've seen like 16 different shapes in the last two months. So what we've seen is we've seen a lot of evidence of transactions being placed, our properties being placed under contract as promising values, and then those transactions being thrown back by the market for one or more reasons, but they all lead to credit rates, credit spreads. So, you know, we've bought and sold in several different types of markets. When interest rate volatility is doing what it does in a market like this, it becomes a real popular excuse for a buyer to throw back a deal. And you see a lot more buyers enter the market that are more promoter oriented where they try to put a property under contract and then go raise capital behind it. And we found in our experience that a non reliable buyer like that creates an uncertain transaction and we just can't run our business in that environment for dispositions. Does that answer your question?
Jonathan Kelcher (Equity Analyst)
Yeah, I guess we need a calmer credit environment before volumes pick up. Yeah, more or less, right? Yeah. Okay, thanks. I'll turn it back.
OPERATOR
Our next question will come from the line of Dean Wilkinson with cibc. Please go ahead.
Dean Wilkinson (Equity Analyst)
Thank you. I just want to follow on Jonathan's question there, Dan. Do you think that that reticence from the buyer is coming more from the equity side of things or do you think that credit is starting to clamp down on them a little bit and maybe these were potentially, you know, sort higher levered acquirers that just are not getting that access to credit. And you look at the 30 year now Pearson through 510 is probably heading there, that it's more of a debt issue than an equity one?
Dan Oberst
Yeah, I think the debt begets the equity, Dean. I mean if debt pricing in at 5.3% and 5.4% in some of these markets for the leverage that the private buyers trying to take out, I think you've got to be very convicted on the revenue growth to underwrite an acquisition at a negative leverage. So your equity can afford to be patient, but your credit partner is going to have a hard time levering at 80% advance rates on those acquisitions. And that's speaking specifically to just our observations of the private market and how it's acting right now. I think the other thing you're seeing is the mindset of the seller. Fortunately for our investors, we picked up our acquisitions and lease ups in our 25 acquisition class. The mindset of those sellers right now is they understand there's a clear distinctive line in value between a lease up value and an occupied value. So we're seeing a lot of those developers pivot to, I think, completing their lease ups before they're really actively and sincerely engaged in disposing. Now, naturally we see the greatest benefit in buying a lease up asset, but we see sellers that aren't necessarily interested. They want to hold on to that value as long as they can. So it's an interesting game of chicken you're seeing in the market for inciting a seller who might have the highest value. The buyer wants to generate income increases by buying lease ups. The seller wants to hold onto the lease up because they believe that the occupied asset is going to trade at a higher value. The seller probably walked into that deal higher levered to begin with and is just trying to recoup some of their capital that they placed on the deal from the outset. All that to me leads to sellers hanging on to lease ups a little bit longer and I would say potentially a less reliable private buyer pool than in calmer waters.
Dean Wilkinson (Equity Analyst)
But not necessarily indicative of say, a stressed seller.
Dan Oberst
No, not at this time. I mean, there's always a handful of stressed sellers in just about any environment. But I don't see, I mean, in our discussions with operators, I see them very patient and developers very patient. I'm sure there's probably some, a little bit of acrimony related to partnership behaviors, but nothing on the level of people picking up pitchforks and partnerships blowing up.
Dean Wilkinson (Equity Analyst)
Well, not yet anyway. All right, thanks, Dan. Appreciate it.
OPERATOR
Our next question comes from the lineup. Kyle Stanley with Desjardins, please. Go ahead.
Kyle Stanley (Equity Analyst)
Hi everyone. Just going to your leasing spreads for the first quarter. Obviously Austin looked like there was a pretty good improvement, but Dallas did look a little bit softer than the fourth quarter. Just curious if you can talk about the difference in dynamics between the two markets and what maybe drove that in Dallas.
Dan Oberst
Yeah, sure. So look, supply in Dallas, particularly the northern sub market, Frisco, McKinney, Prosper and Salina is still pretty tough. There is a lot of supply that still needs to be absorbed and it will be because we still have a lot of people moving into these markets as well. But you've got lease ups there that are still offering up to 10 free up to three weeks concessions with gift cards, anywhere from $500 to $1,500. Now we continue to lease up our August acquisition. Right. And we're offering maybe eight weeks free on only certain one and two bedroom floor plans. And some we offer four weeks free on some of our three bedroom floor plans. With that, we're balancing rate. Right. Against physical occupancy. As we continue to lease, we're excited about the momentum that we got at the end of the first quarter and we continue to see happening right now, which is why I believe it will be physically stabilized by July. But we're also looking at the rates as well. We're comfortable with the Physical occupancy between 94 and 96% as we said, and we tweaked the rates to fall within that range.
Kyle Stanley (Equity Analyst)
Okay, thank you for that. That was very helpful. As we look at the non same property portfolio, excluding the owns B, it does look like you've had great success there and it's near stabilization. Something you've talked about in the past is the ability to see margin enhancement as that part of the portfolio becomes more stabilized. Where would the margins be today versus where could they end up as you
Dan Oberst
start to turn over leases and get your second or third kick at the can on these? Right. So, all right, so if you take out the August acquisition, we're probably average physically occupied at about 94%. Once we burned off all concessions, we would figure the margins on those new properties would be around 4, 60%.
Kyle Stanley (Equity Analyst)
Okay. Okay, perfect. That's it for me. I will turn it back.
OPERATOR
again. For any questions, press Star one. And our next question will come from the line of Siram Srinivas with ATB Coremark Capital Markets. Please go ahead.
Siram Srinivas (Equity Analyst)
Thank you. Good afternoon. Guys. I'm reading the question. I didn't miss the initial part of the call, so my apologies as this has already been discussed. But just. Susie, when you look at occupancy in these markets and you see the ramp up, obviously you know, you guys focus more on occupancy through the winter quarters. But there's still, you know, a year over year gap in terms of where stabilized occupancy was and where it is right now. As you see the next couple of quarters play out, are we still comfortable in seeing that supply cliff drop off coming towards the end of this year and probably into 27th?
Dan Oberst
Yeah, Shai, this is Dan. I think we're really comfortable. I mean, you know, we, we engaged an advisor and I think you might have been there when we spoke to it in December, who for example, walked through Austin, looked at the supply numbers in Austin and Then physically walked through every asset that was listed as a delivery or in place or a construction start in the city of Austin. And their numbers, I'd say more or less supported what you would see on CoStar,. I think it was like 60 or 70 units off. So if that's step one, step two is you can kind of understand, I'll say down to the month, how long it takes to deliver a product from shovels in the ground to delivery. So we feel like we have a pretty good picture of construction and process on the supply side of the equation and when those units are going to be delivered, or in this particular case, when they have been delivered from 22 through 25. And then I think the other end is the demand equation. You know, the numbers on net employment growth continue to support, you know, our thesis. I know that we all underwrote probably a little bit less employment and population growth in Texas through 2030, Those numbers are fairly accurate. Those numbers have been out for 10 years and they tend to be fairly accurate as well. And what we're seeing on the ground is that continuous flow of population, but it's in line with our expectations. So when you balance out the projects in place against the population growth, particularly in the 18 or the 20 to 24 category, it's like it really doesn't have to be that much more complicated. There's people coming in. Households form. A percentage of those households are going to rent. A percentage of those renters are going to be new renters. There's a certain number of available units in the market and a certain number of expected residents that are going to be seeking new apartments in that market. And then you just kind of do some little addition and subtraction over a period of time. You can extrapolate some absorption numbers. You know, I think we would all be hopeful that the rates would turn sooner, but the absorption picture has been pretty clear and rigid for the last two years. Hadn't seen many surprises there.
Kyle Stanley (Equity Analyst)
That is great, Kara. Dan. Thank you, I'll turn back.
OPERATOR
This concludes our question and answer session. I'll hand the call back over to Dan for any closing comments.
Dan Oberst
Thank you, Regina. Thank you all. We look forward to seeing you in Nareit, in early June for our investor presentations. And between now and then, if any of our investors would like a tour of our markets, please, you know where to find us. Please reach out to us. We're happy to tour you through our properties. Thank you everyone and have a good night.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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