Good morning. My name is Teresa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tricon Residential Second Quarter 2021 analyst conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question- and- answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. I would now like to hand the conference over to our speaker today, Wojtek Nowak, Managing Director of Capital Markets. Thank you. Please go ahead. Thank you, Teresa. Good morning, everyone, and thank you for joining us to discuss Tricon's second quarter results for the three and six months ended June 30th, 2021, which were shared in the news release distributed yesterday. I would like to remind you that our remarks and answers to your questions may contain forward-looking statements and information. This information is subject to risks and uncertainties that may cause actual events or results to differ materially. For more information, please refer to our most recent management discussion and analysis and annual information form, which are available on SEDAR and our company website. Our remarks also include references to non-GAAP financial measures, which are explained and reconciled in our MD&A. I would also like to remind everyone that all figures are being quoted in US dollars, unless otherwise stated. Please note that this call is available by webcast on our website, and a replay will be accessible there following the call. Lastly, please note that during this call, we will be referring to a supplementary presentation that you can view by joining our webcast, or you can access directly through our website. This will be a useful tool to help you follow along during the call. You can find both the webcast registration and the presentation in the investors section of triconresidential.com under News and Events. With that, I will turn the call over to Gary Berman, President and CEO of Tricon. Thank you, Wojtek, and good morning, everyone. We appreciate you joining us today. Tricon's momentum continued in the second quarter as strong demand trends coupled with excellent operating performance led to solid financial results for our company. I want to start by thanking our dedicated team members who continue to raise the bar quarter after quarter in how we perform and serve our residents. We've had an incredibly productive year to date, and none of it would've been possible without the dedication and passion that our team brings to work every day. For those listening in, please know I'm extremely proud of your efforts and what we're all accomplishing together. Let's start on slide two and talk about the key takeaways we want to emphasize for you today. First, our business is benefiting from long-term tailwinds that support our Sun Belt middle-market rental strategy. Americans are choosing to live in the Sun Belt because of superior job growth, better weather, lower taxes, more affordable living options, and now a heightened preference for space brought upon by the pandemic. Our rental homes address the housing needs of America's largest demographic, the millennials. Second, our core single-family rental business continues to deliver solid operating performance. With exceptional demand trends and low supply of available homes, it's clear that our single-family rental business is booming. Third, we achieved a record pace of acquisitions this quarter with 1,504 single-family rental homes acquired primarily through organic resale channels, and we expect volumes to accelerate further into Q3. The torrid pace of acquisition should silence any questions or concerns about our ability to invest in what is admittedly a very competitive housing market. Our growth initiatives are supported by $2 billion of third-party equity capital commitments announced year to date, making this the most prolific year of fundraising in Tricon's 33-year history. These investment joint ventures provide a clear path for us to double our portfolio to 50,000 homes over the next three years. Finally, we've achieved all of the above while remaining disciplined with our balance sheet, substantially exceeding our deleveraging target a year ahead of schedule. Let's now turn to slide three for a summary of our results. We reported earnings per diluted share of $0.72 compared to $0.16 in the prior year. Our core FFO per share was $0.14, representing a 27% increase when compared to last year. Our consolidated net operating income grew a solid 16% year-over-year, while overhead and interest expenses remained relatively stable on the whole, creating strong bottom-line growth. We also recently achieved a number of strategic accomplishments, including the formation of our $1.5 billion Homebuilder Direct JV, inclusion into the FTSE EPRA Nareit Index, and subsequent to quarter end, the launch of our largest JV to date, the $5 billion SFR JV-2. We also completed a volatile equity financing for CAD 201 million in Canadian dollars, which helped to reduce our leverage and position us well for continued growth. Moving to slide four. In our single-family rental business, we saw strong growth for new and existing assets as Tricon's proportionate share of NOI increased by 10%, and same home NOI grew 5.5% compared to last year. Without the impact of the Texas storm, our same home NOI growth would've been 60 basis points higher at 6.1%. We also achieved a near record same home NOI margin of 66.6%, driven by strong operating metrics. It is worth noting that our NOI margin would've been 67% if we were to exclude the impact of the Texas freeze. In U.S. multifamily rental, we had our best quarter since Q1 2020, with operating metrics exceeding pre-pandemic levels, including a return of positive NOI growth, as well as solid occupancy, turnover, and blended rent growth trends that are accelerating further into Q3. Finally, for sale housing delivered another very strong quarter, distributing $19.7 million of cash to Tricon. Let's now turn to slide five to discuss the fundamental trends supporting our Sun Belt middle-market strategy. We often talk about the great migration to the U.S. Sun Belt and have shared with you numerous statistics in recent quarters that clearly show these demographic trends accelerating during the pandemic as the suburban and single-family lifestyle becomes even more enticing during a health crisis. These are not just passing trends, but rather long-term population shifts that have been in place for many years. You can see from the most recent census data that population growth in Tricon's markets has outperformed the national average by about 400 basis points over the past 10 years, and is expected to continue to outperform in the foreseeable future as growth begets growth. Over the past year, these markets have also seen the fastest rebound in employment growth, exceeding the national average by about 300 basis points. Population growth and job growth are the key drivers of housing demand. We believe the attractive combination of warm weather, lower taxes, strong job growth, and affordable living options that has been in place for some time will continue to drive housing demand in the Sun Belt for many years to come. Let's turn to slide six. With such strong housing demand trends, it's no surprise that home values continue to appreciate. Tricon's single-family rental portfolio experienced home price appreciation of 15% year-to-date, which contributes meaningfully to our growth in book value per share. At the same time, we're also seeing market rents continuing to rise, and we've been able to increase new move-in rent growth by a similar 15% year-to-date. This compelling correlation between home prices and rents has allowed us to acquire homes at attractive cap rates and create value for our shareholders quarter- after- quarter. With such compelling long-term trends on our side, it should come as no surprise that we focused on single-family rental as our core growth strategy. On slide seven, we outline our asset mix, where you can see that single-family rental now represents 93% of our consolidated real estate assets and is expected to remain above 90% going forward. Residential development is expected to remain near 5% of assets and also includes build-to-rent communities that add to our SFR portfolio. Multi-family rental has been reduced to 2% of assets as a result of the portfolio syndication and is expected to remain below 5% going forward. Let's now move to slide eight to expand on our SFR growth strategy and talk about our various acquisition channels. As you can see, we have a diversified acquisition strategy and have formed complementary joint ventures with leading third-party investors to help us scale faster. Through these channels, we plan to double our portfolio to 50,000 single-family rental homes over the next three years. Subsequent to quarter end, we announced SFR JV-2, the successor to SFR JV-1, where we'll continue to acquire resale homes mainly through the MLS, as well as off-market channels and portfolio acquisitions. SFR JV-2 is our largest joint venture to date and will add approximately 18,000 homes to our portfolio over the next three years alone. During the quarter, we also announced the formation of Homebuilder Direct JV, which focuses on buying new scattered homes and completed build-to-rent communities directly from homebuilders. This new venture is very synergistic with our legacy for-sale housing business, as it leverages our longstanding relationships with homebuilders to gain access to newly built homes. Over the past year, we've also expanded into the development of SFR build-to-rent communities under our joint venture with Arizona State Retirement System. On slide nine, you can see a summary of our SFR joint ventures. The key takeaway here is that these complementary investment vehicles each have a unique acquisition strategy that allows us to grow faster and diversify our portfolio while providing a variety of housing options to our residents at accessible price points. Turning to slide 10, we'd like to give you some more insight into how these JVs have allowed us to expand our buy box and double our acquisition volumes. Our expanded buy box enables us to buy homes in 21 markets, compared to 12 previously under SFR JV-1, including cities such as Phoenix, Las Vegas, and Greenville, South Carolina, while still remaining focused on our middle-market demographic. Our target cap rates have tightened by about 50 basis points to a range of 5%-5.5%, which reflects the shift to lower cap rate markets where we have in-place operations but did not buy in JV-1, and also the inclusion of new homes under Homebuilder Direct acquisition channel. Interestingly, even with lower going-in cap rates, our underwritten returns for JV-2 and Homebuilder Direct are higher than that of JV-1, as we continue to benefit from the incredible attractive debt financing environment and the ongoing institutionalization of the SFR industry. Let's shift gears to slide 11 for an ESG update. Following the release of our inaugural ESG report this quarter, we engaged in several initiatives in support of our company-wide commitment to ESG. We completed our first GRESB submission in June, which positions us to receive our first GRESB rating in 2022 from the most prominent real estate-focused ratings agency. Second, construction began in June on Ontario's first purpose-built Indigenous Hub, which is a part of Tricon's West Don Lands project. This is something we feel honored to be a part of, as the Hub will be a gathering place for Indigenous people to help support the reclamation of culture and identity at a time when the atrocities of the Residential School System are top of mind for all Canadians. The Indigenous Hub will help meet critical healthcare, spiritual, employment, training, and family support needs for the community. Finally, I'm pleased to report that Tricon has met or exceeded commitments to both the 30% Club Canada campaign and BlackNorth Initiative's CEO pledge to increase gender diversity in Black, Indigenous, and people of color representation at board and senior management levels. There's still lots of work to be done, diversity, inclusion, and belonging remain a priority for our organization and a key aspect of hiring plans for both leadership and non-leadership positions. At Tricon, there's genuine purity in our mission. We care deeply about our employees and the communities in which we operate, We know that a diverse organization will position us better to serve our residents and the communities they live in, as they themselves are inherently diverse. That concludes my opening remarks, Speaking of diversity, I would now like to pass the presentation over to Wissam to discuss our financial results. Thank you, Gary, and good morning, everyone. First of all, I want to thank our team for the strong results we produced this quarter. With their efforts, we achieved record-breaking numbers while launching significant investment vehicles to grow our business, effectively controlling our costs, and meaningfully reducing our leverage. Slide 12 highlights our progress against the five key priorities that we set out in 2019. These include growing our core FFO per share at a compounded annual rate of 10% over three years through 2022. Raising approximately $1 billion of third-party capital over three years. Growing our book value per share by reinvesting our free cash flows into accretive growth opportunities. Reducing our leverage and improving our reporting. As you can see, we are well on our way to achieving, and in most cases exceeding, the goals we set out well ahead of schedule. Let's begin with our three-year FFO target. So far, we've achieved $0.27 of FFO per share year- to- date. Assuming the current trend holds, we are confident that we can achieve our FFO target of $0.52-$0.57 in 2022, even with higher diluted share counts caused by our exchangeable preferred share offering last year, and our recent equity offering. In terms of raising third-party capital, it has been a record-breaking start to the year. We have raised $2 billion of fee-bearing equity capital so far, which is double the goal we set out and a year ahead of schedule. This includes our recently announced SFR JV-2, our single-family rental Homebuilder Direct Joint Venture, our U.S. multifamily portfolio syndication, and our Canadian multifamily joint venture with CPP Investments. With regards to reducing our leverage to a target range of 50%-55%, we have exceeded our target ahead of schedule and now are sitting at 46% net debt to assets. This translates to 42% net debt to assets on a proportionate basis and gives us ample flexibility to continue growing while keeping our leverage at a prudent level. Our final priority was to improve our reporting, which is substantially completed with our transition from investment entity accounting to consolidated accounting last year, as well as adopting REIT-like MD&A disclosures such as FFO and AFFO per share. We also published our first annual ESG report in May, a major milestone in our journey. This report showcase our ESG commitments for the coming year while detailing how we performed last year. Let's turn to slide 13, where we provide highlights of our key metrics for the quarter. First, our net income from continued operation grew almost four-fold year-over-year to $146 million. This included approximately $71 million of NOI from our single-family rental properties, representing a 16% year-over-year increase. We also had a $254 million fair value gain on rental properties in Q3 compared to $33 million in the prior year, reflecting significant home price appreciation in Tricon's markets. Second, our core FFO per share increased by 27% year-over-year to $0.14 or CAD 0.17. Third, we reported AFFO of $0.11 per share. This translates to CAD 0.14 and provides us with ample cushion to support our quarterly dividend of CAD 0.07 per share, reflecting an AFFO payout ratio of 42%. Now let's move on to slide 14 and talk about the drivers that contributed to our FFO per share goals this quarter, which relates to our proportionate share of the portfolio. The year-over-year increase of $0.03 per share or 27% can be attributed to the strength across several aspects of our business. First, our single-family rental portfolio, which makes up 90% of our real estate assets, delivered 10% growth in Tricon's proportionate NOI. This was driven by a 16% increase in the number of homes, coupled with strong blended rent growth of 5.7%. All this was partially offset by 1% decrease in occupancy due to our accelerated acquisition pace of vacant homes. Our other businesses also contributed meaningfully this quarter. Of note, residential development continues to perform exceptionally well as demand for development lots in our for-sale housing business remains strong. The business contributed $8.3 million to our FFO this quarter and generated $19.7 million of cash flow for Tricon, including performance fees. There was also a $4.9 million increase in private funds and advisory revenue driven by an increase in development fees earned from Johnson Lot sales, higher asset management fees earned from our syndicated U.S. multifamily portfolio and Homebuilder Direct Joint Venture, as well as substantial performance fees earned from legacy for-sale housing investments. The offsetting factor was a lower U.S. multifamily rental FFO year-over-year due to the 80% portfolio syndications. On the expense side, we saw a year-over-year decrease in interest expense due to refinancing activities that have allowed us to benefit from the lower interest rate environment as well as lower balance outstanding on our corporate credit facility. This was largely offset by higher corporate overhead as we continue to grow our company, as well as higher weighted average diluted shares outstanding from our preferred share equity issuance last year and our recent equity bought deal. Turning to slide 15, let's discuss our debt profile. As we look out to 2022, we expect to refinance the bulk of these maturities with new property level debt, including securitizations. We see a significant opportunity for interest expense savings in today's low interest rate environment, given that the blended rate on these maturities is approximately 3.1%, whereas the current market is around 2.25% for five to seven-year terms. Moving to our liquidity profile on slide 16, you can see that our current liquidity position is strong, with annual recurring cash flows and projected cash flow sources providing ample funding for our near-term growth initiatives. Our current AFFO run rate net of dividends gives us over $55 million of annual cash flows to reinvest in growth. This number continues to grow. Meanwhile, on the liquidity side, we have approximately $570 million of our current liquidity, plus $185 million of net distributions expected from our residential developments over the next several years. In terms of investments, we have $720 million of cash commitments in the next three years, which gives us strong visibility into our growth profile. In short, we are well-funded for our growth plan. We will aim to calibrate the pace of growth such that our leverage metrics remain at a comfortable level. On that note, let me pass the call over to Kevin Baldridge, Chief Operating Officer, to discuss the operational highlights for the quarter. Thank you very much, Wissam. Good morning, everyone. We had another stellar quarter of operating results, and I want to acknowledge the efforts of our operations and customer service teams. These teams I'm extremely proud to work with and who continue to put our residents' well-being first. Let's move to slide 17 to review the performance of our core single-family rental business. We continue to benefit from strong demand trends, which drove higher occupancy, rent growth, and resident retention, and resulted in same-home NOI growth of 5.5% year-over-year, or 6.1% excluding the impact of the Texas storm. Digging into the numbers, same-home revenue grew 5.4%. This was driven by a slight occupancy increase of 10 basis points and average rents increasing by 5.4% lease- over- lease. I'm pleased to report that our bad debt has stabilized, representing 1.7% of total revenue this quarter, only 10 basis points higher than this time last year and down from a high of 2.7% in Q4 2020. With that said, over time, we believe we will return to pre-pandemic levels of sub 1%. On the expense side, we saw an increase of 5% compared to last year. This was largely driven by a $500,000 increase in property taxes, representing a 4.8% variance from the prior year as a result of higher assessed property values. We also had a $600,000 increase in repairs and maintenance expense, which was about 19% higher than last year, largely driven by the Texas storm. This was partially offset by a $500,000 decrease in turnover expenses, which are down by almost 37% year-on-year due to lower turnover as we continue to focus on exceptional resident service. We also returned to ordinary course capital improvements, which resulted in fewer items being expensed. Turning to slide 18, you can see that the strong demand trends in single-family rental continue to fire on all cylinders. With exceptional demand for our homes and limited available supply, occupancy remains at near all-time highs, while rent growth on new lease continued to increase and hit an all-time high of 17.8% growth in June as we harvested the loss to lease that has built up over time with our low turnover rate. Meanwhile, rent growth on renewals is inching up as strong demand for our homes allows us to adjust that metric up a bit more while continuing to be sensitive to our residents' financial circumstances. July's KPIs built and improved on the strong operating performance produced during the first half of 2021. Same-home occupancy was 97.5%, while blended rent growth printed a new record high of 9.3% based on 20.7% new lease growth and 4.9% renewal rent growth. In terms of turnover, our same-home rate was a low 23.2% on a proportional basis in July and compares to 27.9% in July 2020. Let's turn now to slide 19 to discuss our U.S. multifamily rental business, where I'm pleased to say that we've now largely internalized property management of the portfolio. This has been a huge undertaking, which we believe will lead to operating efficiencies and superior resident experience. Following our 80% syndication, in Q2, we reported only our 20% proportionate share of the operating results. For that, I'm pleased to report that our same-home NOI growth is once again in positive territory, with a 5.9% increase year-over-year. When we dive into the components of NOI, revenues were up 5.7% compared to last year. This was largely due to a 210 basis point increase in occupancy to 95.6%, while being partially offset by marginally lower average monthly rent. Bad debt has generally stabilized and was only slightly higher, 2% of total revenue, increased slightly. In general, concessions have almost disappeared while blended rents are improving, driven by a lease trade-out rate of 14.3% in the quarter. Balance sheet suggests. Second, our Canadian multi-family development portfolio is on course to triple in value as we complete and stabilize the projects over the coming years, thereby capturing the value creation with a robust for-sale housing market providing a constructive backdrop for this business. Taken together, these investments could be worth over CAD 6 per share in Canadian dollars when fully realized. With our recently announced joint ventures, we have a clear path to doubling our portfolio to 50,000 homes and strengthening our position as a leader in the SFR industry, which is still in the early innings of institutionalization. Industry-leading operating platform, which allows us to deliver consistently strong results while offering superior service to our residents. Our people first culture and focus on innovation are competitive advantages. Logan with RBC Capital Markets, your line is open. Thank you. Good morning. Good morning, Matt. Gary, you've done a great job of setting the business up with new joint[audio distortion] ..ventures and get those joint ventures invested with really high-quality homes so we can offer more options to our residents. That's by far and away the biggest goal. I'd also like to see us with brand-new, high-quality housing. In Canada, north of the border, over the next three years, I'd love to see us largely stabilize our portfolio, create substantial value. In Q2, if you think there's potential for further fair value gains over the next 2 quarters? Yes, thanks Matt. Remember, the way we calculate our fair value is really backwards looking, so we always take four quarters rolling, and we are very conservative about it. It's actually catching up. Over the past several quarters, we've seen home price appreciation increase significantly across a lot of the areas that we're in. It's not just one area specifically, it's across the entire regions. Amount to continue over the next several quarters going forward. Remember, if you evaluate it on a cap rate basis, we're still very conservative from that perspective. We do expect fair value pickups to continue. Matt, maybe I could just add to that. Even with the big fair value increase this quarter, if you look at our SFR portfolio on in-place NOI, it's about a 5% implied cap rate. If we use in-place, it's 4.8%, and if we use run rate, it's about a 5% cap rate. Extremely conservative. Again, as what Wissam said, because of the lagging nature methodology of how we determine the fair value. We're not seeing any portfolios trade anywhere near those levels, there's substantial opportunity for more fair value increases going forward. Agreed. Maybe one last one from me. If I look at your subscription facility, it would appear that the Home Builder Direct JV has started to deploy capital. Can you give us a flavor for the initial acquisitions in terms of region, home size, and maybe talk about a timeline? [Sean], you want to take that? Sure, good morning, Matt, and thanks for asking that question. As you recall, we closed Homebuilder Direct midway through this quarter, we ended up closing on 105 homes in that vehicle like Dallas, San Antonio, Houston, and Austin in Texas. We're also acquiring homes in Phoenix, Atlanta, Charlotte, not too dissimilar to our broader portfolio. Growth this quarter. I recognize the Texas freeze played a role, the 5% is a bit higher than what we've seen in the last couple of years. How should we think about that expense growth in the business? It's a bit of a noisy quarter on the expense side. One of the reasons for that is the Texas freeze. If you isolate or remove the Texas freeze and in Q2 of last year and in Q3, we really deferred non-essential maintenance in CapEx. That also is creating some noise in the numbers. We're seeing wages, material costs with supply chain issues creating pressures on all of our expenses. Property taxes are going to move up with higher home prices. Insurance premiums have moved up. All in all, we are in an inflationary environment, I think we should expect higher expense growth. I would say that the business is so strong, the fundamentals are so compelling. In direct expenses under SFR? Yeah. Yeah. I think some of it's the noise. If we're talking about the same line, Mario, I'm just going to take a look at. We show the revenue in the fee, in the revenue item fees and other revenue, we show the expense associated with that in other direct expenses. That part of the increase in the other direct expenses is associated. Where home prices in the U.S. dictate they should be across most regions. When you sit back, what do you think is the biggest risk or the thing that takes up the most mind share for you? If anything, we're really protecting our residents. We're giving them more visibility and stability with their own finances. We're also building in more and more loss to lease in our portfolio. You know, higher than the industry and it accelerated at 20% now into July, which is just unbelievable. Part of that is because we are self-governing on renewals. At this point in time. I think the way we're running our business just gives us a much longer runway. Got it. The new lease spreads, would that be a fair indication of where you think the mark-to-market in your portfolio is? 20% seems high to me, but it wouldn't shock me if the loss to lease was in that kind of 15% range. That was similar to where we comped the portfolio a quarter or two ago against Zillow. Sam is more reasonable. Obviously, we continue to build more and more loss to lease every quarter as we, again, hold back on renewals. Okay. My next question is more of a high-level question. In your 2020 investor day in Florida, you kind of laid out various initiatives, and you've achieved pretty much all of them sooner than anticipated. The question is somewhat similar to an earlier one. It looks like over the next three years, it's really kind of keep your head down and focus on what's been announced In terms of initiatives. If we look out three to five years, what are some of the things today that the organization's focused on that may not necessarily be material, such as the Canadian multifamily development completion over the next three years? It may not be as material, it's like new interesting things that the organization's looking at that you think could have a very material impact, three to six, three to seven years out. I think if we keep on looking further out. High level, this is the big thing that everyone should focus on. We're going to go from 25,000 homes, to where we are today. After that, if all goes according to plan and we do a good job, there's no reason why we can't raise another round of joint ventures that will ultimately allow us to go from 50,000 to 100,000 homes. That's ultimately what we're focused on, it's absolutely achievable. We need to observe the natural speed limit of our business and not grow too fast because then we might have operational hiccups. We're able to go from now 800 homes. We have this incredible runway ahead to grow the portfolio. As we do that, we're going to become more efficient as an operator. Our overhead efficiency ultimately, I think services to our residents as we ultimately build out a state-of-the-art resident app. That's something that we're going to be working on. I think we're just scraping the tip of the iceberg in terms of ancillary revenue. When we potentially rent an autonomous car to our residents by the hour or by the day. That's just to give you a sense of what ultimately can be done if you control the rooftops with ancillary revenue. There's a lot of exciting times ahead, I think, on that and on innovation. In other parts of our business which don't get as much attention, like all the development, the build-to-rent. We're building a state-of-the-art build-to-rent portfolio. Andy Carmody's running that. Up in Toronto, Andrew Joyner is running what is going to be the unique and highest quality multifamily apartment business certainly in Canada, but maybe anywhere. There will be an opportunity for us to create real value for our shareholders in that. The other thing I would just say is we are incredibly focused on ESG. ESG, I think it is still early days for the real estate industry right now. It is maybe only focused on environmental impact. We think that with the events through the pandemic, investors have really allowed us to prioritize the social factors, which we think allows us to run a much better business as we prioritize our employees and then our residents. You are going to hear more and more about that. We're going to be unveiling programs for both our residents and our employees that we think are incredibly exciting and will make us a better and better company over time. Got it. Just on the SFR, over a long period of time, given what you've learned in developing the U.S., is there the potential in your tracking to export that model into other developed countries across the world? Is there simply more than enough growth in the U.S. to not even think about that? Absolutely, it could be extrapolated to other markets. I just don't think we're focused on that today because it's just such a deep market. The U.S. housing market is the largest asset in the world. Depending on how you measure it's a $40 trillion-$50 trillion asset class. The single-family rental business based on 16 or 17 million units is a $4 trillion-$5 trillion asset class, right? It's bigger than all of the entire Canadian housing market. It is so big, and institutions like us only own about 2%. There's this massive opportunity to roll up a fragmented industry. That's why I would say that single-family rental may be the best business in real estate because you have this incredible roll-up opportunity that you don't typically have in other asset classes. It maybe reminds me a little bit of where storage was 20 years ago. There's incredible runway ahead in the U.S. We don't need to look further afield. Right. Okay. Congrats on executing on the strategy that you laid out. Thank you. Thank you, Mario. Thank you. Your next question comes from the line of Jonathan Kelcher with TD Securities. Your line is open. Thanks. Good morning. Are you guys still looking at doing a U.S. apartment Sun Belt joint venture? We are. We're significantly advanced on creating what we call a growth vehicle. That growth vehicle will probably be announced with a deal. This is not going to be a major fund. It's really a growth vehicle that will allow us to really round out our portfolio and just kind of build on it on the margin, right? Some places, for example, we might only have one or two assets, and there's an opportunity to really kind of round that out for our institutional partners. That's something you should expect later in the year, probably in Q4. Okay. That's helpful. Just on slide 12, and just so I understand it, because it does sound through previous questions that you guys are, I guess with the exception of the apartment JV, pretty much done with third-party capital raisings until you get a good chunk deployed. It still shows a $1 billion 2022 target. How should I think about that? What we're doing on this performance dashboard is setting out targets, right? Long-term goals that were basically put in place in 2019. The 2019 target was $1 billion by 2022, and we doubled that already in 2021. We're double where our target is. That's all it is? Yeah. Okay. Just double-checking on that. The second question I have is it's like very good for-sale housing quarter and the performance fees obviously helped your quarter. How should we think about both of those lines for the back half of 2021? Yeah. Look, the for-sale housing business is booming, right? This is where I think when we set some of our targets, we didn't expect such a strong margin of for-sale housing. The pandemic, just with all the de-urbanization and de-densification trends, work from home, it's created an unbelievable backdrop for all things housing in the U.S., but certainly for for-sale housing. Everything in that business for us today is on fire. That is coming through in our investment income as we use discounted cash flow analysis and appraisals. Cash flow's coming in sooner. Home prices and lot prices are moving up, and so the numbers are higher than where we thought they would be. I would say where we typically think they should be on the for-sale housing side would probably be half of where they're coming in this quarter. We would typically target high single-digit unlevered returns on invested capital. Right now they're double that. I would say they're quite a bit higher than where we would expect. On the development fee side, I think this is a strong quarter. I would say we think the development fees are probably pretty stable going forward. Although I will say that Johnson is benefiting from this really strong environment. As home builders start to limit their releases, which they're doing, we may see lot sales slow down a bit. Other than that, look, Houston and Texas are extremely strong. I would say that the development fee line is pretty stable, but we had a strong quarter. Okay. For-sale housing should continue elevated for, I guess, the rest of this year. The other one was on the performance fees, which are obviously very lumpy. Do you have any- Sorry line of sight for the backup? Yeah. I would say, look, they're extremely episodic and lumpy, as you said. We cannot predict them quarter- to- quarter. I'm not going to predict them quarter- to- quarter for you except to say that there'll be significant performance fees over time, but I would expect probably a quieter back half of the year. Okay, thanks. I'll turn it back. Sure. Again, if you would like to ask a question, press star, then the number one on your telephone keypad. Your next question comes from Stephen MacLeod with BMO Capital Markets. Your line is open. Thank you. Good morning, guys. Hi, Steve. Hi. Lots of great color on the call, thank you. I just wanted to focus in on your goal to double the size of the single-family rental portfolio. Could you just give a little bit of color around the pace to get there? I assume is it fairly even over the next three years? Secondly to that, how do you see margins evolving as you double the size of the portfolio? Are there any mix impacts? Thirdly, you've obviously invested a lot in the infrastructure to support the single-family business that we've seen at some of the investor days, which is impressive. What size portfolio does the infrastructure support or can it support without adding more investments along the way? John, do you want to start on the pace, and then maybe I'll fill in on the margin or Kevin can chime in after? Yeah. Yeah, sure. Stephen, that was a great question. I think as we indicated earlier on the call, this quarter we acquired just a hair over 1,500 homes. We think that this coming quarter, Q3, we're on track to acquire 2,000+ homes. Recall also, there is some lumpiness and seasonality in acquisition volume. In particular, Q3 tends to be our highest of the year. It's likely to drop down a little bit into Q4. All in all, if you think about acquisition volume, 6,000, 7,000+ acquisitions a year, if you multiply that by three years, 6,000 times three is 18,000-20,000. That gets you to that 45,000-home target that we indicated earlier. Gary, In terms of mix, sorry, I'll talk on that, and Gary can speak on margin. Now that we've been able to expand our joint ventures across all of our markets and even add a few more, we think that the mix is improved actually a little bit. When you think about the margins in some of these markets, for example, Phoenix, where we're now buying in meaningful volume, it's typically been a higher margin market for us, which is certainly helpful. You offset some of the drag that we see in some of the slightly lower margin markets with higher property taxes. Gary, I'll let you talk maybe about the total margin impact. Yeah. Again, just to add a little bit more color on the pace. I think if John has his way, we're going to go from about 6,000 home annual pace to 8,000 over time. If we can get up to 8,000, obviously we go from 25-50. The other thing is you also have to remember that we have the build-to-rent program, and that's going to deliver about 2,500 units over the next several years. If all goes according to plan, we'll probably raise another build-to-rent fund, which will allow us to grow even faster. We're very confident about our ability to go from kind of 25,000-50,000 over the next few years. On the margin, yeah, absolutely. Some of these West Coast markets do have higher margins. New homes, the Homebuilder Direct will be favorable to the margin because all other things being equal, because when we buy new homes, they have lower repairs and maintenance in the early years. That's favorable to the margin. I think in terms of giving some kind of commentary on where the margin could go, we're about 67% today if you exclude the impact of the Texas freeze. I think there's still quite a bit of opportunity in the portfolio. Obviously, you've seen the releasing spreads, which is a major opportunity. I think we can probably push our occupancy higher. We're about 97.5. There's no reason why we couldn't push that higher to 98. The bad debt is elevated, and will start to come down probably next year. That alone could bring us, as we normalize all of that, could bring us from 67%-68%. I think, look, if we can be in an environment where revenues are going to grow faster than expenses, there is a path to getting to a 7 handle on the margin. That's probably not a short-term goal, Steve, but probably over the mid-term into longer term, there's no reason why we couldn't ultimately get to 70%. That's great. That sounds very encouraging. Maybe, just finally, with respect to the capacity around the investments that you've made, what size portfolio can the infrastructure currently support? Yeah, sorry, we didn't get to that part. Yeah. The organization has definitely been built to manage a much larger portfolio. That's one of the things that's so exciting. We could do a lot more with the team we have in place, we should see real efficiencies in our overhead as we deploy the capital and go from 25,000-50,000 homes. That's a really exciting opportunity, I think, to become more efficient, and that will drive our FFO per share growth over the next few years. In the field, though, as you add more homes, you do need to add more bodies, right? The synergies really will come more in the centralized office in corporate. As we go from 25,000-50,000, we're obviously going to need to add a lot more maintenance techs. Yeah. Right. Okay. Well, that's great. All my other questions have been answered. Thank you, and congrats on the performance. Thank you, Steve. Your next question comes from the line of Tal Woolley with National Bank. Your line is open. Hi. Good morning, everybody. Hi, Tal. I want to talk about the Canadian platform for a second. The Taylor, you're going to be finishing construction towards the end of this year. When should we expect you guys to start pre-leasing, and what do you think your expectations of net rents are going to be? Do you have an idea of, on stabilization, what your expected yield is going to look like? Yes. We are going to complete the building in March. We're a little bit behind, but it's a much better opportunity, I think, to lease the building in March than maybe December or January. We will start pre-leasing around that time, maybe a little bit before. I think in terms of lease expectations, it'll clearly be $4 per foot plus, is where we're going to lease. I would say that, and this is I think for The Taylor, but it's a commentary probably for the entire portfolio. We've seen pressure on the rents during the pandemic, but I would really view it as a disruption. It's really kind of a temporary disruption and we'll ultimately probably be back on target for our underwriting. We're seeing that in The Selby. It's unbelievable how fast the market's moved over the last few months. We've gone from 82% occupancy to we'll probably be closer to 97% in a month or so. You can see how fast we're going to be going back to pre-pandemic rents and then growing from there. We typically view the pandemic really as a disruption, and given how tight the market is as everything opens up and the border opens and we get more foreign students coming back, we'll be back to where our underwriting is. I think on The Taylor, we're expecting a trended development yield of closer to 5.5, maybe even at 5%-6%, but 5.5%-6%. Certainly above the 4.75% we've been guiding to in terms of how to think about the valuation of the portfolio. The Taylor should be quite a bit ahead of that. Okay. You're talking about your leasing experience at The Selby too. Any lessons you've learned from there that you could take to the other projects? I'm going to hand that question over to Kevin. Kevin, any questions, any lessons learned on The Selby that we could apply? Then maybe Andrew, you're welcome to chime in. Yeah, I think that it's really having the staff trained and ready and being nimble and understanding what the market is, understanding what our competitors are doing, constantly looking to see what is being advertised, being nimble, listening to the residents as they're coming in. We started using YieldStar at the property that's helping us set rents. It compares to the market, but also to our own property. It's just looking at how long a unit sits on the market and whether we need to move the rents up or down. Just making sure that the properties present themselves and that they're inviting, it's well-maintained, it's groomed. Making sure that the resident experience is unsurpassed. What we've noticed with The Selby was the quality of the construction and the amenities that were delivered are second to none. We were in the pandemic, and it was hard to use the amenities. As we started to open up, we've seen people just gone back in. The amenity package, I know we're doing the same with The Taylor and on the other projects, are going to be remarkable. What we've learned too is just really engaging with our residents. Having a good social media presence and in the property, having all the different events. Even if they're virtual events, we had a lot of people that were taking part in those events, and they were spreading that. As the economy started to open up and the salons started to open up, that word of mouth really brought in the resident base and the prospects in, which has helped us to move back in and really get up to stabilization. Okay. Just my last question, on the residential development income that you booked this quarter, I apologize if I've missed this somewhere in the MD&A, is it possible to get just a little bit of clarity on the composition of that income? Is that predominantly lot sale income? Is it realized, unrealized gains on the value of the investments? Yeah. We could probably take that offline for you. I would tell you, the way that income is determined, Tao, is through, largely, we talked about this earlier in the call, is through a discounted cash flow analysis and appraisals. This all being essentially for-sale housing. It's all for-sale housing, it's mainly lot sales. In some cases, we're also selling homes to consumers. Essentially, if you're in an environment where lot prices and home prices are going up and you're selling faster, from a discounted cash flow perspective, you're going to have higher income. That's essentially what's happening. That's why the income is quite a bit higher than what we would've forecast. We said earlier that we typically expect an unlevered yield on the invested capital in the high single digits, and we're probably double that rate today. That, again, is a reflection of just how strong the U.S. housing market is. The entire makeup of that is essentially lots and home sales. Okay. Sorry for the double question. I'm triple booked this hour. No problem. I apologize for it. No dumb questions. Okay. Thanks, Gary. Yes. There are no further questions at this time. I'll turn the call back over to Gary Berman, President and Chief Executive Officer of Tricon Residential. Thank you, Theresa. I would like to thank all of you on this call for your participation. We look forward to speaking with you again in November to discuss our Q3 results. This concludes today's conference call. You may now disconnect.