Good morning. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the BSR REIT Second 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, again, press star one. I would now like to turn the conference over to Spencer Andrews, Vice President of Investor Relations and Marketing. Please go ahead, sir. Thank you, Krista, and good day, everyone. Welcome to BSR REIT's conference call to discuss our financial results for the second quarter ending June 30th 2026. I am joined on the call today by our Chief Executive Officer, Dan Oberste, our Chief Financial Officer, Tom Cirbus, 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 August 12th 2026. Dan, over to you. Thanks, Spencer. Our second quarter performance reflects the resilience of our portfolio and the continued momentum in our business. Total portfolio revenue and NOI increased compared to Q2 last year. Sequentially, we generated growth in same-community occupancy, total occupancy, same-community revenue, total property NOI, and FFO. Blended lease trade outs once again turned positive during Q2 and moved higher in July. We made substantial progress in our organic growth initiatives, including a significant increase in occupancy at our August 2025 acquisition compared to Q1 and continued progress on our resident amenities programs. To highlight a few selected numbers in the second quarter, same-community occupancy increased to 94.6% from 94.3% in the first quarter. Same-community revenue increased 35 basis points versus Q1 of this year. Trade-outs were 50 basis points positive for the quarter, with continued acceleration to a blended increase of 1% for the month of July. Our retention rate in Q2 was 60.1%, an increase of 30 basis points from the end of Q1, and 270 basis points from the end of Q2 last year. Physical occupancy at our August 2025 acquisition increased to 91% at quarter end, up nearly 20 percentage points from March 2026. We made further progress within our resident amenities programs, Bulk Internet and Valet Trash, which have received a highly positive reception from our residents and are now break-even to FFO accretion in the second quarter. The economic fundamentals supporting our markets remain strong. Apartment deliveries and starts are certainly continuing their predictable decline from peaks exhibited previously in this decade. As a result, in the first half of 2026, and particularly in the second quarter, we saw apartment demand outpace deliveries. As I've noted before, this process has not been as rapid as we'd hoped or expected, but you can see the tangible positive momentum in much of this quarter's results. Of course, we aren't waiting for the rising tide of market demand to drive stronger financial performance on its own. We are driving growth using our strongest asset, our talented people, to source, underwrite, and execute upon platform initiatives, including each of the initiatives we laid out in December of last year. To provide a brief update on each. First, the lease-up of our 2025 acquisition class. With our August 2025 acquisition approaching physical stabilization at the end of Q2, we can expect the back half of 2026 to more fully reflect the concessed but occupied revenue potential of the 2025 class. Our focus now turns to the second bite of the apple within this cohort of assets. The opportunity here is best highlighted by looking at our non-same-community NOI margin. You'll note our year-to-date non-same-community NOI margin sits at approximately 450 basis points behind our same-community NOI margin. Therein lies the second bite opportunity. Between collecting rent on physically occupied assets for an entire quarter or year versus just a portion thereof, burning off concessions, and normalizing the expense picture at each of these five assets, we believe that the non-same-community to same-community NOI margin differential will naturally compress and present the remaining opportunity in this category. Second, on our resident amenity programs, currently highlighted by Bulk Internet and Valet Trash initiatives. Bulk Internet is running without any issues to speak of. We are live on six of our 26 properties and ramping up ahead of schedule. In the ground on seven additional properties, with the balance slated to begin in the back half of the year. As new properties come online in late Q3 and in earnest in Q4, we expect material benefits to our other income line item to begin its ramp. On Valet Trash, we are now live at eight of our properties, and this resident amenity initiative is currently working to plan. Finally, platform efficiencies. We successfully implemented our assistant community manager centralization effort during the second quarter, which will generate an annualized expense savings for the rate of $0.02 of FFO per unit while concurrently enhancing efficiency of operations. While these initiatives are still in the early stages, we are making excellent progress, and the results so far only reinforce our confidence in the broader value creation opportunities across our portfolio. We are confident that we will achieve our targeted incremental growth of $0.13-$0.22 per unit by early 2028, excluding the impacts of changes in market rents, expenses, interest rates, et cetera. All in all, our long-term growth story is fully intact. We have an outstanding property portfolio in top-tier markets that is performing at a high level, and we are adding further value through our platform-induced growth initiatives. We fully expect our business momentum to continue to grow in the quarters ahead as rental markets steadily improve and we make further progress in our operational enhancements. We are increasingly confident that we are positioned to drive strong returns for our unitholders. I will now invite Tom to review our second quarter financial results in more detail. Tom? Thanks, Dan. Our financial performance in the second quarter was, as a whole, in line with internal expectations and continued to reflect improvement on a sequential quarterly basis. While the pace of this quarter-over-quarter improvement was at the low end of our target range in Q2, primarily driven by modestly slower than expected top-line rental growth, the market fundamentals supporting our business recovery continued to strengthen. Beginning with leasing, effective rates on new leases declined by 2.4% in the quarter, while renewals increased by 2.9%, resulting in a 0.5% increase in blended rates. That return to positive rate growth represented an improvement of 1.5% in the blended rate compared to the first quarter and underlies the improved supply-demand picture in our core Texas markets. Further, in July, rates on new leases declined by 90 basis points while renewals increased by 2.2%, resulting in a 1.0% increase in blended rates. We are encouraged by the continued momentum in trade-outs over the summer as April, May, June, and July each got sequentially better on a blended basis. Same community revenue in Q2 was $26.4 million, a decrease of 1% compared to last year. This was primarily due to a reduction of $0.3 million from lower average occupancy, which was 94.6% versus 95.6%, and $0.2 million from lower average monthly in-place rent. The decrease was partially offset by an increase in other property income of $0.2 million, which was driven by an increase in the utility reimbursements and resident amenity programs. Sequentially, same community revenue of $26.4 million for Q2 2026 increased 35 basis points compared to Q1, primarily due to higher average occupancy, which was 94.6% versus 94.3%, as well as higher average monthly in-place rent. Total portfolio revenue of $34.2 million in Q2 increased 1.5% compared to last year. The increase was primarily the result of $4 million of revenue generated from our 2025 property acquisitions, partially offset by the loss of $3.2 million from our 2025 property dispositions and a $0.3 million reduction from same community properties. Sequentially, total portfolio revenue of $34.2 million increased 1.1% from Q1, primarily due to the performance of the 2025 acquisitions. Same community NOI for Q2 2026 of $13.9 million decreased 2.8% from last year. This was primarily attributable to, one, the decrease in revenue I just described, two, timing related to the real estate tax funds received in Q2 of last year, as Q2 last year received an outsized amount of refunds, and three, an improvement in property insurance expense of $0.1 million after another fantastic year for our annual property insurance renewal, which went effective in April. Sequentially, same community NOI decreased 1.4% from Q1 2026, primarily attributable to the lower property tax refunds received of $0.2 million. Total portfolio NOI for Q2 2026 of $17.9 million increased 0.5% from last year. The increase was the result of a $2 million contribution from our property acquisitions, offset by the $1.5 million lost due to our 2025 dispositions and a $0.4 million reduction from the same community properties. Sequentially, total portfolio NOI for Q2 2026 of $17.9 million increased 1.9% from Q1 2026. The increase was primarily the result of the increase in total portfolio revenue, in addition to a $0.2 million increase in prior year property tax refunds received from the property dispositions, partially offset by the decrease in same community NOI. As Dan alluded to in his remarks, total portfolio NOI will continue to improve as we graduate from a focus on physical occupancy to a focus on full economic stabilization of our non-same community properties, as demonstrated by the non-same community NOI margin opportunity. Below NOI, G&A expenses were essentially flat year-over-year and down 6.6% sequentially from Q1. As we communicated last quarter, legal and professional costs were elevated in Q1 and normalized in Q2. Finally, Q2 net finance costs were up 35% year-over-year and 3.7% sequentially. The year-over-year comparison is extremely noisy because recall the second quarter last year was our primary transition quarter, and thus, the portfolio was not carrying full leverage for the quarter. Sequentially, net finance costs are up due entirely to interest rate resets which occurred in our derivative portfolio. All in all, FFO in Q2 2026 was $7.1 million, or $0.18 per unit, compared to $9.2 million, or $0.21 per unit last year. The decrease was primarily driven by three items. First, the change in same-store NOI. Second, increased finance costs, which was partially offset by third, the ramping momentum in our non-same community portfolio. Sequentially, FFO in Q2 2026 was $7.1 million, or $0.18 per unit, compared to $6.9 million, or $0.18 per unit in Q1 of 2026. Once again, the slight increase in FFO was driven primarily by momentum in our non-same community portfolio, offset by financing costs. On AFFO, the same drivers apply that I just mentioned on FFO. However, unique to AFFO, Q2 of this year saw an outsized spend in recurring CapEx driven by a delay in Q1 spending, primarily related to the host of weather events that occurred in the first quarter, and thereby delayed spending in this category. In addition, given the heavy concessionary environment we faced in the second half of 2025 for our lease-up properties, our straight-line rental revenue adjustment was positive this quarter as those concessions have released over time. On the balance sheet, BSR REITs debt to gross book value as of June 30, 2026 was 51.7%, compared to 51.2% at the end of 2025. This amounts to $732.2 million of debt outstanding, with a weighted average interest rate of 4.1%, a weighted average term to maturity of 3.9 years, and total liquidity of $39.7 million at quarter end. Finally, on guidance. You will note we updated our same community portfolio guidance to reflect the modestly slower pace of top-line recovery relative to our expectations at the beginning of the year. We have also updated our expense guidance to reflect the significant savings we are experiencing in line items relative to expectations. Net-net, we do not expect any overall change in our initial same community NOI guidance. Secondly, as we mentioned in the earnings release, while our August 2025 acquisition continued to make significant leasing progress during the second quarter, reaching 91% physical occupancy at quarter end, stabilization is occurring slightly later than originally anticipated. As a result, and given the compounding effect of being behind our initial expectations, we have revised our FFO per unit and AFFO per unit 2026 guidance ranges down slightly to reflect the operational reality at that asset. At its core, our real estate business remains very healthy and largely in line with expectations as we continue building revenue from our lease-up activity and begin experiencing the effects of the economic stabilization of our non-same community assets, albeit slightly later than originally anticipated at one asset. We will, of course, continue to update this guidance as needed throughout the balance of the year. I will now turn it back to Dan for his closing remarks. Dan? Thanks, Tom. As we close out our prepared remarks, I'd like to emphasize the underlying message of Tom's last point. While the pace of lease-up at one property, that is our August 2025 acquisition, is running approximately a month or so behind our initial 2026 expectations. The remaining 96% of our portfolio remains largely on track with our initial expectations. Though rental revenue momentum is slightly behind our initial outlook for the year, there is significant momentum down the P&L. Our resident amenities programs are fueling expected growth in other incomes. Centralization efforts are saving operating and personnel costs. Tom mentioned the positive news related to insurance and taxes. Our platform efficiency initiatives are taking hold, just to name a few. While the top-line market improvement is obviously not yet at the level we all would like, we are as excited as we've ever been about the medium to long-term outlook in our portfolio. As we've said in the past, we can't control the rental market, but we can control our platform performance and the experience our residents have in our communities every day. I can tell you that the BSR team is performing as our investors expect, and we will efficiently and methodically drive the growth from this portfolio that our investors deserve. When you add this visible growth to the slowly budding turnaround in rental rates resulting from improving supply-demand fundamentals and the inherent economic stabilization we will experience in the coming quarters, we are well-positioned to generate consistent, superior returns for our unitholders. That concludes our prepared remarks today. Tom, Susie, and I would now be pleased to answer your questions. Operator, please open the line for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw that question, again, press star one. Your first question comes from the line of Jonathan Kelcher with TD Cowen. Please go ahead. Thanks. Good morning. First question, just on the blended rents. If I look back, I think they were positive in Q3 of last year. How confident are you that we are at the beginning of an upward trend here? Or do you think we may still be sort of ± 0% for a couple of quarters? Hey, Jonathan. Yeah, overall, at a high level, we think the market is healthy and that rents will continue to improve. You may see us in the third quarter pull back a little bit specifically to raise occupancy, which is the other lever we choose. But overall, I think that what we are seeing right now in July, things are looking good. Okay. It is probably pretty close to ±0% in Q3, and then hopefully trending up from there. Is that how I can interpret that? Well, if you look specifically at the BSR portfolio, yeah, we may choose to lower rates a little bit in Q3 to bring up occupancy. But overall, the net effect is more rental revenue, right? Yep. With a higher upswing in Q4. Okay. Thanks for that. Secondly, on the guidance. The expense growth came down, the midpoint came down 250 basis points, which is quite a bit. Can you maybe give a little bit more color on what's driving that? Sure. Guidance-wise, the main driver is The Ownsby here, right? When it comes to rental revenue. Concessions are simply, we expected concessions to still be in the Celina market. They didn't come down at the pace we were initially anticipating when we issued our guidance for 2026. What we expected was probably around eight weeks free. What we're seeing is the equivalent of about 12 weeks free when you consider what people are throwing in, 10 weeks free and maybe a $1,500 gift card. If you look at that, there's a four-week gap that we have to account for now that we're dealing with our competitors in the Celina market, which caused the majority of the write-down related to The Ownsby for the second half of the year. The other piece is much smaller, related to the same store portfolio. We still have pressure in those markets too. There's still concessions, and they also didn't come down quite as much as we expected, though let me reiterate here, they are coming down, and that's maybe a $14 gap when we look at net effective rent per unit for the rest of the year. Jonathan, this is Dan. As I mentioned earlier, if we move further down the P&L and speaking specifically to OpEx, the main drivers of our OpEx reductions were real estate tax decreases and a positive insurance renewal. We are seeing some green shoots related to platform centralization that we spoke about last quarter. We think that is worth probably a penny in the back half of the year, and it is going to continue to drive OpEx compression, which makes us feel comfortable lowering that guidance at the midpoint, as you mentioned. I would say there is about a dozen or two other positive variances that we are seeing, namely bad debt is sitting right around 0.5% of collected revenue. Traditionally in this asset class, we would underwrite 0.8%. That would be for Class A suburban multifamily. I have seen it go as high as 1.75% in Class C or B-minus assets in a recessionary environment, but I have not really ever seen it go down to 0.5%. I think that is a trend that caught a lot of apartment operators by surprise this year. It is a good positive surprise that our residents are paying. I think there has been a bunch of macro data in the last month, more or less saying residents or individuals are choosing which moats to pay their debts on and leaving the rest for consumer spending kind of decreases. So there are probably 12 or 13 positive variances that we are watching. Payroll, bad debt, insurance, and taxes are probably leading those positive variances in OpEx for us and instills the confidence that we can provide in lowering the expense guidance for the year. Okay. That is helpful. Just on payroll, are you guys fully staffed on the operations right now? We are. As Susie mentioned last quarter, with the portfolio centralization efforts, the potting, this is something you are seeing kind of throughout the apartment operators. The ability to use a little bit of technology and some superior leasing efforts to kind of make your property sites a little bit more efficient on the inside, meaning your property leasing personnel. So we are enjoying some expense savings from that, much like our competitors. Susie talked about last quarter how we were initiating that project in the second quarter. That is now complete. I do not think the second quarter evidences the annualized expense savings, but the remainder of the year will. That's right. Okay, thanks. I'll turn it back. Your next question comes from the line of Kyle Stanley with Desjardins. Please go ahead. Thanks. Good morning, everyone. Just looking at some of your leasing spread disclosure, the answer you may have already given here, but in Dallas, the new leasing spreads were actually below Austin this quarter. Just looking for a bit of color there. It does seem that there's obviously some decent strength in Austin, so maybe a bit of an update there. Then maybe what's driving that difference. Is it really kind of the owns, as you've already talked about? Is it sub-market specific? Just looking for what's going on in those two markets. Yeah, sure. Austin, things are looking great in Austin. As you've seen, each quarter, the rates for new leases continue to go up, and we're excited about that. Concessions are coming down in Austin. While they still exist, overall, though, they're coming down. What we're seeing right now is six to eight weeks free in Round Rock, where it used to be 10-12 weeks. We have two properties there. In the Buda-Kyle submarket, we still got 8-10 weeks free, and in Cedar Park, there's 8-10 weeks free. All good things to say about the trends we're seeing in Austin. Dallas, as I just spoke about, we do have additional supply primarily in the northern Dallas submarkets. That's Frisco, McKinney, Prosper, and Celina. We've got three properties there. Specifically The Ownsby that we've talked about. There, the concessions have lasted a little bit longer and still remain at about 12 weeks when you consider everything the other operators are throwing in. Okay. That makes sense. I think it goes to what you said in your prepared remarks about closing the margin gap between the non-same store and the same store. As you look into the second half and then into maybe the spring leasing season next year, how quickly do you expect to be able to roll off the incentives? I know obviously it's incredibly difficult to forecast, but if you're at between 8- 12 weeks, depending on market today, how quickly can we see that roll off in your view? Yeah. Okay. Specifically with our August acquisition, that one because the larger concessions have remained intact, that one's going to take probably another year to 14 months because we haven't started the process of burning off the concessions like we'd hoped to at this point. With the remainder, maybe a little bit shorter. Those are running right on track as we projected. Okay. That's it for me. I'll turn it back. Thanks. Your next question comes from the line of Brad Sturges with Raymond James. Please go ahead. Hey there. Just to touch on the ancillary revenue opportunity and just wanted to, I guess, understand a bit more about how to think about the ramp-up or the cadence on ancillary revenue coming online, in the back half of the year and into 2027 as new properties get added to your Valet Trash and Bulk Internet programs. Yeah, Brad, it's Tom. I think about it this way. Just to give you an example and as a reminder on that initiative, six of 26 assets are live today. Five of them we installed last year. One was a test asset that's been live for a while. Let's say five went live. They went live somewhere between late November and March of this year. As a blended group, that portfolio of assets is now 37% penetrated and probably ramping a little ahead of schedule. We like the pace at which that's happening. As a reminder, it's a function of the rent roll turning, right? We don't push this amenity to every resident day one. We let the tenant turn or the rent roll turn for them to renew. It's a function of time. That's the general pace at which you're seeing. We have leased up a third of the portfolio over the course of the last, call it four to five months, right? On a blended basis. I would expect that to continue to happen. As an update on the balance of the portfolio, 16 or so properties will come live between the end of the third quarter here and the end of the year, and those will all continue to ramp, going into 2027, likely on the same pace, hopefully, if not faster. Some of the assets we hope to get online sooner rather than later. Obviously, it is to our great benefit to get it online as fast as possible. That is how I would think about the pace of it. Okay. I appreciate that. My other question would be just looking at your interest rate swap schedule in terms of just thinking about the counterparty options where you could get called out. If you did get called out of swaps, where would be market rates today if you had to enter into new swaps? Yeah. The best thing to look at there is we have a sub-event in the press release. We did a swap late last week, actually, in early August here. The replacement rate, we expect to get called out of a couple in January. The replacement rate was 3.1495%, so 3.15%. We took a substantial amount of the expected cancellation, if you will, risk off the table earlier this month. If we wanted to do the same thing on the back half, the rate is very similar. We are continuing to evaluate the best alternative there for the back half of the year swaps as well. Perfect. Thank you. Your next question comes from the line of Himanshu Gupta with Scotiabank. Please go ahead. Thank you and good afternoon. Dan, you mentioned no change to $0.13-$0.22 of incremental FFO, what you mentioned in December. That included $0.03-$0.04 on the platform growth. Just wondering, are you still thinking of doing a JV or any update in that regard? Himanshu, I will take that. The platform growth continues. We are confident in that. When we talked in December, we talked about JVs and a whole bunch of other things that we could do as it related to the platform. Where we are seeing success already rolled out on the platform side is the centralization initiative Susie and Dan talked about earlier. I think that we expect that to do, on an annualized basis, $0.02 of FFO savings. We also are currently negotiating, in the final steps of negotiating for technology enhancements here in-house, which will yield an additional similar amount of savings, $0.01-$0.02 of savings. On the platform growth side, though, we do not have the headline thing that you might have anticipated there. We are achieving it through different means. As we mentioned originally, we could achieve that. I think we have delivered on a lot of that, albeit not having realized the full annualized impact quite yet. Got it. Thank you. Just to be clear, if you hit that $0.75 in 2026, we are talking incremental 30% FFO in the next two years to get to the midpoint of this. Incremental. I am sorry, you broke up for a second. Yeah. I think what I am saying is the midpoint of that is $0.175, which is almost 30%. Yeah. Higher than your 2026 ending FFO. We will see that level of growth in the next two years. Yeah. We feel great about everything we guided to in December. We are more confident today than we were in December that we are going to deliver on all prongs of those. I have given updates on two of the three. Why don't I just round it out with the third? On the third, we said that we had about a $4.5 million revenue opportunity to put people in beds, to just occupy units. This is what we did. To date, we have realized, call it, just south of $3 million of that revenue opportunity, $2.9 million. So about $0.06-$0.08 of that has already been realized and is in the bag. Now, again, it is realized on an annual basis. If you compare our September month-end results to our June month-end results. That does not mean it is reflected, obviously, in our full quarter results. That is ramped over time. The midpoint of the guidance, we feel really good about in all three categories. The annualization effect will obviously take time. It is not going to happen between now and next quarter. It is going to take a year or so, which is why we had to give the horizon of guidance that we did, but we feel really good about it. Now, again, the one caveat being all of that excluded the impacts of market rents and interest rates and blah blah blah. But, on those three prongs alone, we feel great about those drivers driving that amount of growth by early-ish 2028. Thank you, Tom. No, great update and really good progress in all those initiatives. Thank you so much, and I will turn back. Thanks, Himanshu. Your next question comes from the line of Jimmy Shan with RBC Capital Markets. Please go ahead. Thanks. Just a follow-up on the swap question. It is pretty material. If I look at early 2027, there is a whole bunch with early termination. I think what you said was using the current 3.15%, that would be a good way to, that is the rate reset from that time. That is what we should be modeling, assuming everything else stays the same. That is right, Jimmy. There are three swaps that have a cancellation option in early 2027. It is about $197 million that will come due between January and February of 2027. Right. We expect to cancel on all of those. You should, from a modeling perspective, cancel those swaps at that time. They go away, and they are replaced at that point with the 3.1495 swap. Okay. Got it. Thank you. In terms of the rent concessions, I am sure there is math that I could do, but would you be able to quantify the amount of concessions that is currently embedded in the current revenue? Yeah, sure, Jimmy. The place obviously that we are still giving concessions would be our August 2025 acquisition, and they are on certain one and two bedroom floor plans. We are offering eight weeks free and four weeks free on three bedrooms. The other asset would be the one located in McKinney, where we are offering $1,000. Okay. That is it. Okay. It is really only on the newer assets. I guess if I were to just look at the current revenue, what percentage of that revenue would you say that the concessions would be? Yeah. The concessions are embedded in the trade out data too. Let me point that out, when we are looking at rental rates. Yeah. I cannot give you a specific dollar amount. I do not have that in front of me right now, but I think you can look at the trade outs and take that into account when you are seeing the increases we are getting or the declining decreases that the concessions are baked in there. Okay. The current rent that you report, again, that is net of the concession, right? Correct. Okay. That is it for me. Thanks. Your next question comes from the line of Matteo Sepac with ATB. Please go ahead. Hey, good afternoon. I am just asking one on behalf of [Sai]. With the AvalonBay and EQR merger, have you seen any impact on the broader transaction market? With which merger? I am sorry. AVB and EQR. Yeah, the AVB, EQR one. Oh, broader impact on the. No, I don't think we've seen any impact on the broader market related to AVB, EQR. I do think we've seen some interesting information out of Camden most recently with their rotation out of the coast and into the Sun Belt, where the returns are sunnier. And I think they've done a pretty good job of communicating their exit economics and their entry points. But not necessarily from AVB EQR, no. Okay, great. That was all for me. I'll turn it back. Again, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Matt Kornack with National Bank of Canada. Please go ahead. Hey, guys. Maybe, Dan, if you could expand upon the last question, just with regards to the types of CapEx you're seeing in the market at this point and maybe the types of buyers as well. Sure, Matt. Narrow interest rates and cap rates continue to persist in our markets. I think in strong economic times, that's indicative of aggression in the marketplace. Buyers are going to be willing to accept lower yields up front on the promise of improving fundamentals. I don't think we're seeing anything different here. I think that's precisely what's happening in the apartment sector. Cap rate spreads are at record lows, and transaction volumes have been pretty strong. That's particularly the case in the stronger growth markets. The nature of the buyer has probably changed. I don't think we've seen public REITs increase or decrease kind of their net acquisition targets. I think there's been a lot of communication and really transparency from the public REITs of weighing development yields and going in to stabilize cap rate spreads against weighted average cost of capital. I'll lean heavily on, I think that effective communication, because that's really how we diagnose whether it's a good time to buy or not. I do think you're seeing some strong individual high-net-worth family support, stronger than usual. That makes sense. Somebody's got a 1031, they're going to rotate, they're going to buy at a lower cap, and they're going to expect improving fundamentals to create a look-back cap that's within their underwriting thresholds. As we said in the past, we're pretty disciplined about our cap rate spreads, what we want to see on acquisition, and what we want to see from a look-back cap rate expansion. Right now, I think acquisition cap rates in our markets relative to our cost of capital, our cost of debt, probably about 60 basis points. We'd obviously like to see that wider before we would want to significantly increase our acquisition appetite. Is there a rule of thumb there? I can understand why current spreads would give you a little indigestion, but what is a good spread? What is a good spread for cap rate relative to debt? Yeah. For you guys in terms of what your kind of ideal would be. Yeah. I think for stabilized assets, what we want to see is about a 125 basis point spread between our going-in unlevered yield or our cap rate, and our cost of debt. For us to determine that an environment is ripe for stabilized acquisitions, for example, Matt. The second thing we want to see is an opportunity, whether it is because of organic growth through rate improvement, or as we have depicted in the past in 2019 and 2020 through value add initiatives, to grow that spread by another 100 basis points on a two-year or three-year look back. That would denote a clear path to what I would say is three-year sequential 5% compound annual NOI growth. That is the kind of number we like. I think for development yields, that spread needs to be a little bit wider for us to be interested. I would say, given our balance sheet, that is appropriate. That is the capital allocation we have applied to every acquisition that we have done as a public REIT and prior, too. It has worked out fairly well. When cap rate margins relative to debt costs get tight, we pay attention. Sometimes it is the fundamental macro. Sometimes, we could be wrong, Matt. A 60 basis point cap rate spread to us does not look that appetizing on the acquisition side. Maybe we could be missing 20% revenue growth in 2027, and maybe we are underwriting to lower revenue growth. So the current cap rate environment helps us understand how we are underwriting and how we are seeing things, where we are right, and where we could be wrong, challenging some assumptions. That's fair enough. Maybe just quickly on the cost of debt. I think we can impute it from the swap numbers you're talking about, but what is that on an all-in basis, including the spread plus the swap? Yeah. I call that about a 4.75%, 1.5 year, two-year fixed rate. We would probably move in and around that, depending on our credit profile and leverage metrics, debt to EBITDA. So that would be a REIT cost of capital. I think the read-through on the agencies right now, in the United States, the agencies are a significant support vehicle for financing private capital, private multifamily acquisitions. Agency rates tend to hover between 5.2% and 5.6%, depending on your leverage, an 80% leverage or a 60% leverage, depending on your term and tenor, seven-year, five-year, 15-year, 20-year, all the way up to 40 year with HUD, 35 and 40 year for HUD. I think also depending on where in the country you're buying assets, if it has an affordability component. If you're willing to agree with the lender to accept some rent caps, things of that nature. But agency debt, private buyer looking at 80% leverage, 65% leverage, 5.2%- 5.75% right now. That's very helpful. Appreciate that color on both fronts. Last one from me is a little bit more technical. I always get it wrong, but the tax refunds, they've been pretty equal between the first two quarters of the year. But last year, you had some pretty sizable ones in the first half of the year, then they trailed off towards the end. Any color or guidance in terms of, is the $650,000 a good kind of number to use for the rest of the year, or are you expecting some big ones to come in at some point? We think that's embedded in our expense guidance. But Matt, I think that's a fair number to underwrite for the remainder of the year, probably straddle between quarters. If we see a good appeal that's executable, we're not paying attention to whether it's September 30th or October 1st. We're running the business. As we've done in the past, if we've got an outstanding appeal that's not booked in a quarter, we'll make sure and communicate that to our investors so that they know what to expect for the following quarter. But as it stands right now, it's been a positive year year-to-date, and we're sailing with tailwinds right now for the remainder. Okay. The first two quarters, they were fairly similar. That's a relatively good run rate for property tax net of the refunds. That's correct. Thanks, Dan. Appreciate it. Your next question comes from the line of Dean Wilkinson with CIBC. Please go ahead. Thanks. Good afternoon, everyone. Dan, maybe a theoretical supply side question. Obviously, probably doesn't make a lot of sense to put a shovel in the ground today, but people are still moving there, and everyone wants to be in Texas, myself included. How much runway do you think there is before there might be a speculative supply response? Could a strong 2027 have that come back, or do you think it's a little longer than that? Oh, I've seen this in 2009. I've seen it in 2015. I think everyone else on the phone, Dean, is rolling their eyes at your philosophical question. I know how much everyone loves hearing my philosophical answers. We saw it in 2009 and 2015. I think this cycle is a little bit elevated through some undisciplined supply coming in in 2023 and 2022 and 2024. When we think about the markets, supplies exceeded demand on a trailing 12-month basis for 10- 15 quarters until recently. Right? Sure. I think the first half of the year, we saw absorption in excess of supply. But if you look at that second quarter in most of these growth markets, I'll highlight Dallas, Austin, and Houston, but you can see the same phenomenon in Nashville and Raleigh and a handful of other markets. The absorption in Q2 was essentially 60%-70% of the absorption on a trailing 12-month basis, including Q2 last year. So I think that's what happens when supply falls off a cliff. We've seen deliveries fall. You're seeing it right now. Construction starts plummeted 50%-80% from their high water mark, and they're down to 78% in Austin. They're down 50% in Dallas and 68% in Houston. It takes 26 months to 30 months to build an asset, start leasing it up. We've kind of built one on the water with you, and you got to see it. We announced it in August of 2021, started leasing up in Austin in January of last year, and it took about 12 months to get it to 94% occupancy, and now Susie and her team are burning off the concessions. I think you start taking 78% and 50% and 68% away from those starts like we've seen in 2023, 2024, 2025, now 2026, and you can expect the back part of this decade there not to be much supply to speak of, much deliveries to speak of. I think Q2 is a good example when you saw that rate acceleration in Austin, because we'll pick on Austin a little bit. It's been in the doghouse for a couple of years on account of oversupply. Sequential new leases in Austin increased by 4.14%. Average rate improvement in the country improved in Q2 better than any quarter since 2015, COVID notwithstanding, of course. I think that's the kind of phenomenon that you're going to get out of multifamily. You saw some bad returns in 2023, 2024. You could predict them. As an investor, you could see them coming years out. On the other hand, you can also predict the low levels of delivery in 2027, at the back half of 2026, 2028, 2029. So long as the underlying fundamentals of macro job growth and affordability driving population growth remain, then I can't speak for the nation, but I would say, relatively speaking, these growth markets are going to continue to produce outsized returns. Just likely get tighter, and then it'll come back. So it makes sense. That's the question. Thanks, Dan. That does conclude our question- and- answer session. I would now like to turn the conference back over to Dan Oberste for closing comments. That concludes our call today, everyone. Thank you all for joining us. We look forward to speaking with you again following the release of our Q3 results in November. For our investors on the line, I will repeat my invite from last quarter. At any time, please feel free and communicate to management. We are happy to take you on an investor tour of our properties. We have seen several take-ups since the last time we communicated to some great success, and I think some pleased investors. Everyone have a good rest of the week, and we will see you again in November. Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.