Good afternoon, ladies and gentlemen, and welcome to the Morguard North American Residential Real Estate Investment Trust fourth quarter conference call. At this time, our lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Thursday, February 15th, 2024. I would now like to turn the conference over to Paul Miatello, Senior Vice President. Please go ahead. Thank you, and good afternoon, everybody, and thanks for joining us for the REIT's fourth quarter conference call. I'll just do a quick roll call of everybody that's with us today. So we have Chris Newman, Chief Financial Officer, Angela Sahi, Senior Vice President in charge of Canadian Operations, and John Talano, Senior Vice President in charge of U.S. Operations. And so with those quick introductions, I'll turn it over to Chris, our CFO, for a quick recap on the year of 2023 and Q4. Chris, over to you. Yeah. Thank you, Paul. As is customary, I'll provide comments on the REIT's financial position and performance. In terms of our financial position, the REIT completed the fourth quarter of 2023 with total assets amounting to CAD 4.1 billion, higher compared to CAD 3.9 billion as of December 31st, 2022, resulting from acquisitions completed during the first quarter and from a fair value increase on the REIT's income-producing properties. The REIT finished the year with approximately CAD 18 million of cash on hand and CAD 2.6 million advanced to Morguard Corporation under its CAD 100 million revolving credit facility, providing the REIT with a total of CAD 102.6 million of availability under that facility. The following is a brief summary of the REIT's notable achievements throughout 2023. During the first quarter, the REIT acquired the remaining 50% interest in Fenestra at Rockville Town Square, a residential property located in Rockville, Maryland, comprising 492 suites for a purchase price of $71.5 million, including closing costs, and assumed a mortgage payable of $34 million. Together with the acquisition of the retail asset Rockville Town Square in 2022, the consolidation of ownership look of this unique mixed-use asset creates operational efficiencies and the opportunity to enhance our long-term vision within the immediate submarket. The REIT acquired Xavier, a residential property located in Chicago, Illinois, comprising 240 suites, to end the first quarter of 2023. The acquisition, totaling $83.8 million, including closing costs, elevates the REIT's core assets holdings to a significant $0.9 billion in value. Also, during the first quarter, the REIT issued CAD 56 million of 6% convertible debentures and fully repaid the maturing CAD 85.5 million of 4.5% convertible debentures. The REIT completed the refinancing of four U.S. properties and one Canadian property, providing gross mortgage proceeds of CAD 187.3 million at a weighted average interest rate of 4.86%, having a weighted average term of 9.6 years. The maturing mortgages associated with the refinanced properties had a balance of maturity of CAD 106.4 million at a weighted average interest rate of 3.36%, resulting in net additional proceeds of CAD 80.9 million before financing costs. The REIT was active under its NCIB during the year, purchasing over 1.4 million units at an average unit price of CAD 16.43, totaling CAD 23.5 million. The REIT's IFRS net asset value per unit at December 31st is CAD 38.34, making the NCIB plan an accretive use of capital. The REIT completed the fourth quarter with CAD 1.4 billion of long-term debt obligations. As of December 31st, 2023, the REIT's mortgage payable has a weighted average term to maturity of 4.9 years, consistent compared to December 31st, 2022, and the weighted average interest rate increased to 3.72% from 3.5% at December 31st, 2022. The REIT's debt to gross book value ratio was 38.7% at December 31st, 2023, a slight increase compared to 38% since December 31st, 2022. Net income was CAD 185.3 million for the year ended December 31st, 2023, compared to CAD 239.6 million in 2022. The CAD 54.3 million decrease in net income was primarily due to a decrease in fair value gain on real estate properties of CAD 128.4 million and an increase in interest expense of CAD 11.5 million, which were partially offset by a decrease in deferred income taxes of CAD 63.3 million and an increase in NOI of CAD 29 million. IFRS net operating income was CAD 180.2 million for the year ended December 31st, 2023, an increase of CAD 20.29 million or 19.2% compared to 2022. The change in foreign exchange rate increased NOI by CAD 8.2 million of the overall variance last year. On a same property proportionate basis, NOI in Canada increased by CAD 7.1 million or 13%, mainly due to AMR growth, lower vacancy, and a decrease in utility expense. NOI in the U.S. increased by CAD 3 million CAD 3 million or 4.3%, primarily due to an increase in revenue from AMR growth and an ancillary revenue as well, partially offset by higher vacancy and an increase in operating expenses. The change in foreign exchange increased same property proportionate NOI by CAD 4.2 million. Interest expense increased by CAD 11.5 million for the year ended December 31st, 2023, compared to 2022, primarily due to an increase in interest on mortgages of CAD 10 million from higher principal and interest rates on the completion of the REIT's refinancings and the net impact of acquisitions and dispositions, as well as interest expense increase due to a higher non-cash mark-to-market adjustment on mortgages of CAD 0.7 million. The REIT's 2023 performance translated into basic FFO of CAD 92 million, an increase of CAD 9.1 million or 11% when compared to 2022. On a per-unit basis, FFO was CAD 1.65 per unit for the year ended December 31st, 2023, an increase of CAD 0.18 or 12.2% compared to CAD 1.47 per unit in 2022. The increase in FFO per unit was due to the following: on a same property proportionate basis in local currency, an increase in NOI partially offset by an increase in interest expense and trust expenses had a CAD 0.08 per unit positive impact, and the change in foreign exchange had a CAD 0.05 per unit positive impact. The impact of acquisitions net of dispositions of properties had a CAD 0.08 per unit positive impact, demonstrating the success of the REIT's capital recycling program. A decrease in other income, primarily from a decrease in interest expense and interest income on the Morguard facility and a decrease in interest earned on the restricted cash held as part of a 1031 exchange, had an overall CAD 0.05 per unit negative impact. The impact from units repurchased under the REIT's NCIB had a CAD 0.02 per unit positive impact. The REIT's FFO ratio continued to decline to 43.8% for the year ended December 31st, 2023, compared to 2022, a very conservative level, which allows for significant cash retention. Operationally, the REIT's average monthly rent in Canada increased to CAD 1,674 at December 31st, 2023, a 5.4% increase compared to 2022, reflecting the quality of our Canadian portfolio. During the year, the Canadian portfolio turned over 11.3% of total suites and achieved AMR growth on suite turnover of 23.1%. While in the U.S., same property AMR increased by 4.2% compared to 2022, having an average monthly rent of $1,845 at the end of December 2023, as the REIT continued its strong performance, benefiting from strong market fundamentals across many regions. The REIT's occupancy in Canada finished the fourth quarter of 2023 at 98.7% compared to 98.6% at December 31st, 2022. Rental market conditions remain strong and stable as housing demand continues to outdistance supply and as an elevated level of immigration and high interest rate environment discourage tenants from home ownership. Same property occupancy in the U.S. of 94.2% at December 31st, 2023, was lower compared to 95.3% at December 31st, 2022. Management expects occupancies to be stable through the midwinter months with reduced leasing activity as well as fewer suite turnovers in the majority of its market. During the year ended December 31st, 2023, the REIT's total Capex amounted to CAD 44.3 million. That included revenue-enhancing in-suite improvements, common area exterior building projects, energy initiative expenditures, as well as garage renovations. At this time, I'll turn the call back over to the moderator to answer any questions. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you are using a speakerphone, please lift the handset before pressing any keys. First question comes from Jonathan Kelcher at TD Cowen. Please go ahead. Thanks. Good afternoon. First question just on the Canadian turnover rates. They fell quite a bit in 2023. Just wonder maybe a little bit of color on that, your expectations for 2024, and maybe related to that, what sort of uplifts you expect to get in 2024 on turnover. Yeah. No problem, John. I'll turn it over to Angela who can address that question. Hi, John. So in terms of turnover, it's really the supply and demand dynamics here with especially with the interest rates being high, just the housing shortage. People are not moving. They know anywhere they move, they'll be paying higher rent. As we turn units over, you can see our turnover growth is pretty substantial. So that's a big part of it. You know, the increased immigration and then, I would say trending for 2024, we'll probably see something similar for the first couple of quarters. But then Q3 typically is where we find a lot more of the moveouts and in the summer months. So that's where we kind of expect things to go. Okay. Then a similar level of uplift in 2024 as 2023? Yes. Okay. And then, just secondly, on the acquisition front, I know you guys have a lot of refinancing potential on your mortgage refinancings this year. What are you seeing in terms of acquisitions? Where would you be looking? What type of properties? Maybe give a little bit of color on that. Yeah, John. It's Paul here. Yeah, I mean, we're, we're continuing to screen the Canadian and U.S. markets, primarily the ones that are within our existing footprint. So I, I don't think we're gonna go too farther afield. You know, we're seeing you know, with, with the interest rates up in both sides of the border, we're still seeing, you know, better opportunities at better yields in, in the U.S. So, you know, that acquisition landscape is, is probably tilted towards the U.S. But, but, but we're continuing to, to look in both countries. Would you be looking, Paul, more at, stabilized properties or potentially value add? I mean, our, you know, we're traditionally a buyer of sort of stabilized and, you know, there, you know, we do some value add programs. So I don't wanna make it sound like it's not gonna be anything too opportunistic. But we will look for what I refer to as light value add. So we're not looking to buy C properties and, you know, move them high up the scale. But we will be looking for some value add opportunities. And I think our recycling program that we executed on in, you know, through 2022 and the first part of 2023 sort of demonstrated that. Okay. That's, that's helpful. I'll turn it back. Thanks. Thank you. Ladies and gentlemen, as a reminder, should you have any questions, please press star followed by 1. Next question comes from Jimmy Shan at RBC Capital Markets. Please go ahead. Thanks. So just on the U.S. portfolio, I was wondering if you could just talk about what your expectation is for in terms of the rent spreads that you think you're gonna get on new and existing leases in 2024. No problem. John, I'll put that one on you. You can answer. Sure. I would say we've definitely seen a slowing of our rent growth. You know, we've had some really fantastic growth over the last several years. And we've slowed definitely going into the winter months, especially the holiday seasons, and in winter in our northern properties. But you know, long term, I'm actually excited because I see that the development pipeline has really started to slow. So we expect probably more of the same of what we've been doing in 2023, in the last two quarters going into 2024. But beyond that, actually, it's looking quite good. I think last quarter, you talked about how you don't expect new leases new lease rates to go negative. We've seen other REITs report negative new leases. Why is that, so is your expectation that. Yeah. That won't happen or? Well, you're seeing our AMR growth being consistent because, you know, generally, we take a conservative approach to rent. We're working on keeping our long-term residents in there. I think some companies were really aggressive with their rents, and possibly got too aggressive. But, you know, we have a long-term approach. We're trying to keep residents in our apartments for the long haul. So we didn't, you know, spike our rents in many of our markets. We took a very conservative approach there. And there's still room in many of them. There are a few markets that are small. New Orleans right now is dipping a little bit. But again, we only have 150, well, actually, 200 and some odd units in that market. And then Tampa has dipped a bit too. But again, I think that's more related to the seasonality. And we look back, you know, years past. And of course, it's been very lumpy over the last several years because of COVID and the pandemic and all that. But, you know, we're seeing more normal rent growth now that we saw pre-pandemic, if that makes sense, during the winter months. So we're cautiously optimistic that things will continue on. Okay. Thanks. And then, Paul, maybe if I could on the question on the acquisitions and sort of allocation of the portfolio between geographies, if I could push you a little on that one. Like, you mentioned you are still seeing better yields in the U.S., but, you know, as you point out, the fundamentals in Canada seem to be a lot stronger than in the U.S. in certain parts of the U.S., at least. Cost of debt is cheaper here. Is there, you know, are you not thinking about potentially increasing that pie that you have in Canada? And, you know, there seems that there are opportunities to buy new assets at pretty good cap rates here as well. Yeah, for sure, Jimmy. You know, as I said earlier, we're definitely taking a hard look in both countries. So we're not ignoring the U.S. And, sorry, we're not ignoring Canada, rather. You know, we are focused on it. And, you know, my footprint comment earlier, you know, probably more applies to the U.S. than Canada. I mean, you know, our existing footprint, you know, geographically is somewhat narrow in Canada, you know, being largely, you know, GTA, Southwestern Ontario, and a little bit in Edmonton. So we, you know, we are looking outside that geographic existing footprint in Canada. So we are, you know, looking to major markets, you know, in across the country. And, yeah, I mean, we, you know, we definitely hope to be able to, you know, complete something. It's, you know, quite frankly, it's been a while since we bought anything in Canada. So, you know, that's not lost on us either. So, we'll be looking hard throughout the first half of this year. Okay. Sorry. And then just on that, you were active. We did buy some stock in the quarter. How are you thinking about or how you think about NCIB relative to acquisition? Yeah. I mean, I think there'll be a balance there. I mean, you know, with the discount to net asset value that we're trading at, you know, we still look at it as a really good place to allocate some capital. You know, so we'll, you know, I predict we'll continue buying back units on some level. You know, by the end of this year, you can see from the disclosures that, you know, the rate, the balance sheet will be pretty reloaded. So, you know, liquidity's not the issue here, right? So we'll be in the fortunate position where, you know, we can execute on sort of both parts of the program, right, NCIB and asset acquisition. So, things are in good shape, especially for the back half of the year. Okay. All right. Thank you. Thank you. There are no further questions at this time. Please proceed. Okay. Well, thank you, everybody, for attending our fourth-quarter conference call. We look forward to speaking to you after Q1. Thanks again. Ladies and gentlemen, this concludes our conference call for today. We thank you for participating, and we ask that you please disconnect your lines.