Good morning. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tricon Residential's first quarter 2022 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, again, press the star one. I'd now like to hand the conference over to your speaker today, Wojtek Nowak, Managing Director of Capital Markets. Thank you. Please go ahead. Thank you, Emma. Good morning, everyone. Thank you for joining us to discuss Tricon's first quarter results for the three months ended March 31st, 2022, 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, EDGAR, and our company website, as well as the quarterly supplemental package on our website. Our remarks also include references to non-GAAP financial measures, which are explained and reconciled in our MD&A. I would like to remind everyone that all figures are being quoted in U.S. 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 the call, we'll be referring to a slide presentation that you can follow along by joining our webcast, or you can access directly through our website. You can find both the webcast registration and 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 Residential. Thank you, Wojciech, and good morning, everyone. We've had a terrific start to 2022, and I'm excited to discuss our Q1 results with you. Let me share with you some of our key takeaways from the quarter on slide two. First, we continue to benefit from the strength of our Sun Belt middle market strategy with insatiable demand for rental homes showing no signs of slowing. Our business has proven to be extremely resilient throughout the pandemic, and we expect it to continue performing well into the future. Second, our growth plan is on track. We grew proportionate NOI by 23% year-over-year, and we're on pace to acquire 8,000+ homes this year with over 1,900 homes acquired this quarter. Third, our single-family rental operations are stronger than ever with record low turnover, record high occupancy, and solid rent growth. As we expect these trends to continue, we are pleased to announce an increase in our same home NOI guidance for the year. Next, our fee revenue increased meaningfully year over year, while overhead expenses remained stable from Q4 of 2021. Finally, we achieved all of this while maintaining a flexible balance sheet with minimal near-term maturities, and ample liquidity to fund our growth plans. You can see these and other metrics reflected in the summary on slide three. Clearly, our business is booming on all fronts, and we'll dig into the details throughout the call. Let's move to slide four. The public markets are going through a volatile time right now with a lot of uncertainty surrounding inflation, interest rates, and the economy. We intentionally built our SFR business to be defensive and believe it will once again prove itself in the current environment. We think of our business as antifragile after the term coined by the author, Nassim Nicholas Taleb. Beyond Taleb's key tenets of resilience and robustness, we expect to thrive under difficult or more volatile conditions for a number of reasons. First, we remain focused on the hardworking middle market demographic. Our resilient resident profile has stable jobs and solid household income of $85,000 with a comfortable rent-to-income ratio of 23%. Second, in this time of hyperinflation, our economies of scale allow us to benefit from the national procurement programs that enable us to save money on parts, appliances, and materials for our homes. Third, as I like to say, the cure for high prices is high prices. As an inflation hedge, we are exposed to both rising market rents as well as rising home prices on our balance sheet. Moreover, our built-in loss-to-lease at 20% should provide a long runway for rent growth. Likewise, a strong correlation between home prices and rent growth also allows us to consistently acquire homes at 5%-5.5% cap rates, making our growth strategy sustainable over the longer term. Finally, what I love most about what we do is that we are able to provide essential housing in a supply-constrained housing market. The insatiable demand for our high-quality, professionally managed homes speaks for itself. In any given week, we get over 13,000 leads for only 200 homes available. As mortgage rates surpass 5%, we estimate that the monthly cost of owning a home is 10%-30% higher than renting a Tricon home. We are not only confident in our outlook, but also believe strongly that single-family rental plays an essential role in addressing the key challenge of America's housing market, namely an acute shortage of housing supply at affordable prices. If managed properly and responsibly, we believe strongly that single-family rental is a noble business because it provides safe, quality housing to American families who either can't afford to buy a home or don't want to at an accessible price point. It also provides residents with a turnkey home and a low-maintenance lifestyle that gives them time back to focus on what's important to them. At Tricon, there is purity in our mission. We truly care about our residents and empower our frontline employees to go above and beyond so that we can provide outstanding customer service. As we turn to slide five, I want to provide you some insight into Tricon's decision to selectively engage with media to help spread this message and to shape a positive industry narrative. Our recent interview with 60 Minutes is a case in point. There are several misconceptions about our industry that we aim to address. We're a people first company and have many programs in place to better the lives of our residents, including our recently launched Tricon Vantage program, designed to enhance the financial well-being of our residents. Our suite of services ranges from educational tools to our Credit Builder Program and other programs to help families buy a home if they so choose. Second, woven right into our company DNA is our long-standing practice of self-governing on renewal rent increases, with annual rent increases for existing residents typically set at rates below market. We want to prioritize our residents' financial security and peace of mind while they're living in a Tricon home. Finally, we're not boxing out first-time home buyers. Our acquisition program accounts for less than 0.5% of resale volumes in our markets, and we typically buy homes that require renovation to make them more livable. In doing so, we are upgrading the quality of the housing stock and the communities where we own homes. What's driving up housing prices is the overall lack of supply of existing and new homes. In this regard, we are committed to being part of the solution, and we're adding 3,000 new homes to the market by 2024 through our Build-to-Rent strategy. In short, we are being proactive about solving America's housing challenges, and we see tremendous opportunity for our business to be a platform for doing good. I would now like to pass the presentation over to Sam to discuss our financial results. Thank you, Gary, and good morning, everyone. Q1 was another great quarter for us, and I want to thank our dedicated team who continue to execute on our rapid growth while delivering a top-notch resident experience. Despite the tough operating background of geopolitical conflicts, rising interest rates, supply chain shortages, and record high inflation, I am proud to report we remain firmly on track to achieve our ambitious goals we set earlier this year. On slide six, we summarize our key metrics for the quarter. Core FFO was up 32% year-over-year to $43 million. Core FFO per share was $0.14, an increase of 8% year-over-year. AFFO was $0.12 per share, which continues to provide us with ample cushion to support our quarterly dividend with an AFFO payout ratio of 43%. Let's move to slide seven and talk about the drivers of Core FFO per share this quarter. Our single-family rental portfolio delivered 23% year-over-year growth in Tricon's proportionate NOI. This was driven by an 11.6% increase in same home NOI and a 12% increase in proportionate rental home count. Our FFO contributions from fees increased by 103% compared to last year. This was driven by incremental asset and property management fees from newly created joint ventures this past year. In our adjacent residential businesses, a 53% decrease in FFO reflects our 80% syndication of the U.S. multifamily portfolio last year. It also reflects lower results from the U.S. residential development versus a very strong comp in the prior year. On the corporate side, we had lower interest expense as we reduced our debt significantly and benefit from lower in-place rates. This was offset by higher corporate overhead expenses as we staffed up for our growth. Of note, overhead expenses were actually down a bit sequentially from Q4, and we expect them to stay around this level. Lastly, the diluted share count this quarter was 26% higher as a result of last year's equity offering to fund growth and reduce leverage. Let's turn to slide eight to discuss our fee revenue and operating efficiencies. Our unique strategy for managing third-party capital allows us to scale faster and run a more efficient business. The fees we earn also allow us to offset a large portion of our corporate overhead expenses. Our recurring fee streams totaled $19 million in the quarter, up 110% from last year. This includes asset management fees, property management fees, development fees, but excludes performance fees as they tend to be episodic. Together, these recurring fees covered about 60% of our recurring overhead costs compared to 44% coverage in the prior year. Ultimately, we expect our fee revenue to cover the majority of our overhead expenses and allow our shareholders to benefit from strong NOI growth contributing directly to the bottom line. Let's talk about our balance sheet on slide nine. We have continued to prioritize deleveraging while remaining focused on growth. We have cut our leverage almost in half since the start of 2020, with net debt to adjusted EBITDA down to 8.1x in the current quarter and net debt to assets at 36%. Much of this was achieved at our U.S. IPO prior common equity offering and preferred equity financing. Turning to our proportionate debt profile on slide 10, the key takeaway here is that we remain focused and have minimal near-term maturities. We have strong liquidity position of $558 million in available cash and credit facilities to fund our growth. Further, I really want to emphasize this. We have minimal exposure to rising rate environments, with 75% of our proportionate debt at fixed rates following our latest securitization transaction, which closed in April. On slide 11, I'm happy to present to you our updated guidance, which includes a 50 basis point increase to same home NOI growth in 2022. This increase is driven by strong revenue growth, which we see continuing in April, but also reflects some moderation for the balance of the year relative to our very strong Q1 print. This is partly offset by expenses tracking towards the higher end of our prior guided range as a result of higher property taxes and inflationary pressure on controllable expenses. However, we reiterate our FFO per share guidance as the strong same home trends may be offset somewhat by higher expected rates on future debt financing this year. Our expectations of acquiring 8,000+ homes remain unchanged. On slide 12, we reiterate our long-term targets as part of our three-year performance dashboards. The 2024 targets include growing our core FFO per share at a compounded annual rate of 15%, expanding our portfolio in the SFR space to 50,000 homes, maintaining stable leverage at 8-9 times net debt to EBITDA, and improving our overhead efficiency such that 90% of our recurring overhead will be covered by fee revenue. Although rising interest rates are a headwind for our FFO targets, this target was set with increasing rates in mind. Moreover, the strong NOI growth we are seeing also provides us with a buffer which makes us comfortable with the outlook. To give you more insight on the drivers of the NOI growth, I'll turn the call over to the man with the tan, our Olympic surfer, Kevin Baldridge. Good morning, everyone. Our strong first quarter performance is without question, a testament to the depth and breadth of our dedicated team. A resident-first approach and our best-in-class operations, all of which continue to fuel growth. I'm incredibly proud of what we've achieved, and I want to thank our team for going above and beyond every day. Let's start with our portfolio growth on slide 13. The past year, we've expanded our portfolio by 32% in aggregate, or 12% on a proportionate basis. We are off to a great start this year with over 1,900 homes acquired in Q1, putting us well on track towards our target of acquiring 8,000 homes in 2022 through resale and new home channels. Q1 is typically a seasonally slower acquisition quarter, so we expect the pace to accelerate in Q2 and Q3. As home prices have increased, so have average rents, which allows us to continue buying at our targeted cap rates of 5%-5.5%. Second aspect of our growth is same home NOI, which expanded by 11.6% compared to last year. Let's dig into the components on slide 14. Same home revenue growth of 10.4% was driven by rental revenue increasing 9.6%. This is made up of a 7.2% increase in average rents, a 70 basis point uptick in occupancy, and roughly 150 basis point decrease in bad debt to below 1%. This was partially helped by outsized government rental assistance received during the quarter. Going forward, we anticipate bad debt moving back towards 1%-1.5% in the near term. Our rent growth remains healthy, with blended rents increasing by 8.7% during the quarter, underpinned by an 18.7% increase on new move-ins and 6.3% increase on renewal. Our renewals reflect our policy of self-governing, which maintains rent growth below market levels for existing residents and in turn keeps our turnover low. As we moved into April, we saw a continuation of these strong rent growth trends. Finally, our other revenue also grew meaningfully, up almost 32% from last year as we increased take-up rates in our ancillary services and resumed late fees after putting them on pause during the pandemic. We see a path to increasing other revenue by over 16% per home over the next couple of years as we continue to roll out current programs such as smart home technology and renter's insurance, and introduce new value-add ancillary services to enhance the resident experience like telecom partnerships, solar panels or discounted cleaning services. A key driver of our expected rent growth going forward is the embedded loss-to-lease in our portfolio, which you can see on slide 15. Our policy of self-governing on renewals, coupled with long resident tenure, has resulted in an estimated loss-to-lease of 20% across our portfolio. We recapture this on new leases, which have similarly been increasing by close to 20%. We expect this loss-to-lease to provide a multiyear runway for rent growth in our portfolio. Let's now turn to slide 16 to discuss same home expenses. The same home expense growth of 8.1% was driven by property taxes increasing 11.5% from last year. We expect that year-over-year variance to come down a bit in future quarters as we comp against higher prior year numbers. Regardless, property taxes are up meaningfully and reflect the significant home price appreciation in our markets. Repairs and maintenance expenses were also elevated this quarter as we return to a higher level of maintenance calls post-COVID. Our work order volume was up 12%, while labor and materials inflation and increased scope of repair work added about 13% to the cost of each work order, even with the benefit of lower material costs. On the other hand, turnover expense was down considerably as our turnover rate decreased by 650 basis points from last year to a record low of 14.7%, thanks to our occupancy bias and focus on our customer, along with a greater proportion of costs being capitalized given the more extensive work being done on homes with longer resident tenure. On the property management side, we've seen the benefits of scale to offset inflation as we're managing 32% more homes compared to last year using our centralized and tech-enabled platform, which results in a lower cost per home. Lastly, other direct expenses were up due to the incremental cost of providing value-enhancing services to our residents, including smart home technology and renters insurance. Put it another way, our non-controllable expenses, which include property tax, HOA, and insurance, were up 10%, whereas our controllable expenses of R&M turnover, property management, marketing, and other direct expenses were up only 5.5% as we concentrate on efficiencies and cost containment to counteract inflation pressures. We are focused on the things we can control to offset inflation where possible, like managing our national procurement program and driving efficiencies through technology and operational improvement, all the while keeping an emphasis on creating the best resident experience possible. Now I'll turn the call back over to Gary for closing remarks. Thank you, Kevin. Let's conclude on slide 17. If there's one thing I can leave you with today is that the factors that have driven our performance and value creation over the past year continue to be in place. As we said throughout this presentation, our focus is steadfast on growth. By partnering with leading global real estate investors, Tricon has a clear path to increasing its SFR portfolio to 50,000 homes by the end of 2024. We have the balance sheet, operating platform and third-party capital in place to achieve this target with confidence, and we believe that favorable tailwinds in our industry should drive strong operating performance for years to come. Our growing portfolio, coupled with strong same home results, should also translate into meaningful NAV appreciation for shareholders. Of course, let's not forget about our adjacent businesses, which account for about 6% of our balance sheet, but represent a meaningful source of upside and potential cash flow to supercharge our SFR growth. These include our Canadian multifamily build-to-core business, a 20% interest in a high-quality multifamily portfolio located in the Sun Belt and legacy for sale housing assets. These businesses are all benefiting from a robust housing market, and we believe they could ultimately be worth 2x our IFRS carry value and represent $1.1 billion in value for our shareholders. Should we monetize these assets over time, we would use the proceeds to pay down debt or grow our SFR portfolio and in the process, simplify our business. That concludes our prepared remarks. We acknowledge that these are tough times filled with uncertainty, but what hasn't changed is the demand trends in our business, which are rock solid. Because of that, we remain confident in our outlook. I'm humbled by the entire Tricon team who put their heart and soul into serving our residents and communities while continuing to drive forward our ambitious growth plans. We've built an incredible platform to do good, to elevate the lives of our residents while empowering our team to be the best they can be. In doing this, hopefully, we can inspire the broader industry to do the same. I will now pass the call back to the operator, to Emma to take questions. With Sam, Kevin, and I will also be joined by Jon Ellenzweig and Andy Carmody to answer questions. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We ask today that you limit yourself to one question and one follow-up. We'll pause for just a moment to compile the Q&A roster. Your first question today comes from the line of Chandni Luthra with Goldman Sachs. Your line is now open. Hi. Good morning. Thank you for taking my question. Could you talk about what are you seeing in the home buying market in general now that mortgage rates have crossed, you know, 5.25%? How has buyer behavior shifted given how precipitously, you know, rates have risen in these last couple of weeks and months? How do you think about the ability to maintain your own cap rates in such an environment, especially given that you have a particular box size in mind? Hi, Chandni. Good to talk to you. It's Gary. I'm going to try to unpack that for you. I think, you know, when we think about buying homes, we're buying in a 5%-5.5% cap rate, right? That still provides us with sufficient spread. The spread's obviously narrowed. We did a lot of securitization at 4.2%-4.3%. Today, that would probably be about 4.7%. What we're continuously doing is we're reevaluating our buy box. We can make tweaks. We make tweaks daily, weekly. We can think about, for example, cutting out the lowest band of cap rates and thereby increasing our cap rate target. We could think about narrowing our market coverage and maybe moving out of some markets that have lower cap rates. Our goal ultimately is to maintain a positive spread. We're allergic to negative leverage, and so there's things we can do to keep on going. What I will tell you is that all other things being equal, even with this higher interest rate curve, it's more accretive for us to buy more homes than less homes. With respect to the home buying environment, it's still extremely strong, right? Our guess is that as mortgage rates continue to move up or the market gets used to these much higher rates, we will start to see that stabilize or peter out a little bit. That's our best guess. We're not clairvoyant. If you look back at previous cycles, every single time that mortgage rates have increased by 100 basis points or more, and in this case, they moved up much more significantly, certainly from where they started. We've seen home prices, existing home prices, and new home prices stabilize or potentially even come down. Now, what's different about this environment is that we've also never seen such shortage of supply. That's what's different. The housing market, both on the existing and new home front, is unbelievably tight, and so the number of bidders is definitely decreasing. Builders, for example, are using rate locks and other incentives to continue to drive home sales. The demand from what we hear and what we see in our own projects is still exceptionally strong. We haven't seen any cracks yet. Our best guess, though, is that over time, at these higher rates, again, you start to see home prices stabilize. If they stabilize, it actually provides a better opportunity for us to buy homes, and it could ultimately allow us to buy homes one at a time at higher cap rates, right? Because again, if home prices stabilize and rents continue to increase the way they are, we are gonna see higher cap rates over time. Thanks. Thanks for your thoughts there, Gary. If home price appreciation slows, you know, and I'm not just thinking 2022, but potentially out years as well and home buying moderates, then how should we think about the ability to charge higher rents? I mean, I'm thinking out years here, you know. Can you really charge new leases at an elevated clip if there is no support from home price appreciation? What happens over time, and we've seen this, we've been in this business now for 10 years, and we've seen this through empirical studies, is that there's almost, you know, a 100% correlation between home prices and rents. Now, they don't necessarily move in tandem. What we've just seen is we've been through a period where home prices have moved extremely rapidly, faster than rents, and that's led to a slight compression in cap rates when we buy one home or two homes at a time. What we think now with much higher mortgage rates is that those home prices are likely to stabilize. Rents will continue to catch up or increase, which will mean that we'll probably see slightly higher cap rates when we're buying homes one at a time. In terms of future rents, yeah, I mean, there's no way that if you think about our rent growth, blended rent growth of 8%-9%, I mean, long term, depending on what your horizon is, that's not sustainable. That will probably likely moderate too. Our forecast, if we look out to, let's say, 2024, we're assuming NOI growth probably, let's say, in the outer years of around 6%, right? We still see very strong growth. There's a couple things to keep in mind. There's huge loss-to-lease in our portfolio, right? Twenty percent, maybe higher than that. As a result, we're gonna continue to get outsized rent growth. The other thing is that the demand for our business, again, this is where I, you know, I'm a little bit more hesitant on, you know, how much will home prices moderate, how much will rents moderate. The demand, as we talked about, is just insatiable, right? We're getting, you know, 13,000 leasing inquiries for 200 homes available any given week. I mean, that is just astounding, right? We're not sure that's gonna go away. It doesn't feel like it today. The business is booming. There's just an incredible product. There are so many American families that want this experience, the low-maintenance lifestyle, and we just think that's gonna continue into the future. Thank you for that insight. Your next question comes from the line of Mario Saric with Deutsche Bank. Your line is now open. Good morning. My one question pertains to the recent kind of proposed transaction with Partners Group, reports of acquiring close to a $1 billion transaction in terms of 2,000 or so rental homes in the U.S. Can you kind of shed any color on what implications in terms of the valuation, if it does indeed trade at that range, what implications there may be for your portfolio, taking into consideration kind of varying rents, location, and so on and so forth? Yeah, sure, Mario. Thanks very much. This is Jon Ellenzweig speaking. You know, that transaction, and there's actually been a handful of private market transactions that have taken place in the last six months. To unpack that, you know, there's a number of markets there, you know, that overlap with ours, but there's also a number of them, especially, you know, more in the Deep South, I believe Midwest, that don't overlap with Tricon. It's less of a target for us. What I would say as we see private market transactions taking place, you know, in spite of, you know, some of the turbulence you're seeing in the public markets, they're still trading at extremely keen or strong cap rates. You know, over the last six months, we've seen portfolios trade, in some cases, as tight as the high twos and in the low threes on in-place rents. I think what is important to remember when you're seeing these private market transactions or even in our portfolio is there's ample loss-to-lease. A transaction that might take place in the low three cap rate on in-place rents may actually be in the low to mid fours on mark-to-market rents. I think that's important to keep in mind when you're thinking about those trades, but also the valuation of our own portfolio. Yeah, I'll add to that. I mean, when you think about the private markets, investors are continuing to increase their allocation of real estate, and we expect that will continue to happen going forward. For every 10 basis points increase in private capital allocation, another $80 billion-$120 billion needs to be allocated to real estate. That's a huge amount of money. The preponderance of that is now coming in many ways into what we call beds and sheds, industrial and residential, because those are the best places to get return today. There's a lot of capital out there. What's happening, I think as we speak, is we're not seeing any private, you know, investors really exit the market. They're just adjusting their return expectations, which makes sense. I mean, the math changed because, you know, underlying interest rates or financing costs are higher. Our best guess from being in the market is that on portfolios, in residential, we've probably seen prices, private market pricing drop from the peak by about 10%. If we say the peak, Mario, is, let's say in February of 2022. We think maybe private market pricing is down 10%. Private market cap rates might be up about 50 basis points, but they are far lower, as John just said, than where the public markets are at. You know, our best guess is kind of where we're trading today. Maybe we're trading at a kind of implied 5.5% cap rate. That is absurd. It's absolutely absurd. If you think about where, you know, private market valuations are today, they're probably at 3.5%. They may be up 50 basis points from where John talked about. They're 3.5% today. That's factoring in a much higher interest rate curve. Again, because of that, the reason for that is because the loss-to-lease. The public markets are not factoring the loss-to-lease and valuations, and private markets are. Okay. My follow-up is, not necessarily related to my original question, but I'll throw it in there. Just, you know, high level, Gary, like, when you look at the past three months, and if you think back to the Q4 call, and I'm specifically thinking about, stuff on the margin. On the margin, what would you say is the one thing that you're incrementally most positive on relative to three months ago? And then conversely, what's the one thing that stands out that you're incrementally more cautious on relative to three months ago, and how has your organization pivoted in the last couple of months to address those things? Are you talking about SFR NOI margin? No, I'm saying overall. Just overall business-wise. Oh, business-wise. Yeah. Well, I think. Look, I mean, I think of where we have to look at things and be monitored very carefully is certainly inflation. I mean, we're in an unbelievably inflationary environment. I mean, we've, you know, we've never seen this before. If you think about it, we've got, you know, balance sheet normalization. We've never seen that before. We have a war between Russia and NATO. That's never happened in our lifetimes. We have zero COVID policies in China. Like, if you wanted to create the perfect storm for inflation, I don't think you could even make that up. That's what it is. We are in an inflationary environment, and that affects our entire business. Now, at this point in time, nothing is insurmountable, and we're very fortunate that we're in a business where we continue to believe that we can drive revenues faster than expenses. We've not seen. You know, if you, if you look at our NOI print this, you know, this quarter, we've never seen revenue and expense growth this high. I mean, they're both really high. It's driving exceptional NOI growth, which is the real positive. The thing we're really keeping an eye on is the inflation, right? It is starting to feel like that's stabilizing a little bit. Supply chain issues feel like they're starting to stabilize a little bit, but that's where we have to continue to monitor the business. Got it. Are you seeing any signs of stagflation within the portfolio? No. No. I mean, in some ways it feels like we're in an economic period of stagflation in some ways. You know, certainly you could feel that with higher grocery prices and in prices at the gas pump and certainly higher rents. As far as our business is concerned, I mean, the business is booming. I mean, if you think about it, let's just talk about this high level. NOI growth in SFR up 12%, multifamily up 18% in the US, 24% in Canada. I mean, those numbers are unbelievable. That gives you a sense of how strong our business is on the ground, and it does not reflect what's happening in the capital markets. Okay. Makes sense. Thank you. Your next question comes from the line of Nick Joseph with Citi. Your line is now open. Hey, it's Mike Bilerman here with Nick. Gary, you just commented that you thought the public markets valuation of single-family rental, or at least your stock, is absurd relative to the private market. I wanna think a little bit about how public market investors sort of I think are more about where the puck is going rather than where the puck is today. There appears to be, as much as you're talking about how everything is bullish, right, prices are down from a home perspective. You know, there may be more risk in the future. Why shouldn't the public markets investors have a higher discount rate or risk profile when they may think that eventually home prices go down and rents could start turning based on that? I mean, we can't move the market. I mean, the market is what it is, and the market's having a moment. There's a huge amount of uncertainty out there. I just talked about the reasons for the uncertainty. When the market is uncertain, it leads to very volatile, you know, movements in the stock market and much lower pricing, and that's what we're seeing today. That's the capital markets. That doesn't necessarily mean that is being reflected on what's happening on the ground today on Main Street or what's gonna happen in the future. As far as our business is concerned, the demand is rock solid. We don't see that changing. Like I said, we've got 200 homes available any given week, and we're getting 13,000, you know, leasing inquiries or leads. That We don't see that changing. People have to live somewhere. You know, if obviously the cost of debt or equity moves up, that will obviously have an impact on valuations. That's beyond our control. What doesn't change is the underlying demand for our business, and we don't see that changing. You know, my best hunch is that the markets tend to overreact. I think we're following that type of situation and things will probably stabilize. You know. Do you- It doesn't change our outlook, as to where we think this business is going. This business was built to be defensive. It was built to be able to be resilient and to perform in inflationary times, which we're in today, and also in recessionary times. We think we do relatively well both in an inflation and in a recession, and so we remain confident in the outlook. You have obviously very big growth plans, and you want to use a lot of other people's money to do that, and you already have raised a bunch of that. Obviously, the equity offering that you did recently delevered the balance sheet and provided you a little bit of growth capital. I guess with the stock where it is, how does that sort of affect your view, right? Because arguably, you could use some of that excess capital to buy your own stock, but, you know, that effectively then just takes up leverage and cuts into the future growth that you want to have. How are you sort of balancing, you know, where you are going to need some level of attractive equity, to be able to fund your, you know, very strong external growth plans? Yeah, no, it's a great question. I think. Look, I mean, the stock market valuation is a point in time. And it it's low today, but it can move up quickly. I think what we don't wanna have is a knee-jerk reaction and say, "Oh, our stock's low today or this week, and now we're gonna, you know, just switch from buying homes to buying back our stock." We don't think that makes a lot of sense. I mean, if the stock was low forever, that might be a different situation. As I said, it's a point in time. The way we think about our business is we're growing NOI by 20% a year, right? If you think about it, that's a combination of external growth. It's the 8,000 homes a year plus the same home growth. That's incredibly strong. We're in an environment where we can grow our NOI 20% a year, FFO per share over time by, let's say, 15% a year. We think it makes sense to focus on the growth and finding efficiencies in our business rather than buying back our stock. Thanks. It's Nick here. Sorry, one more. Just on the balance sheet, given the higher interest rates, how does that change your views on target leverage and then the 25% floating rate debt? Yeah. Hi, Nick. It's Sam. So we're looking at our balance sheet, and we've done a pretty great job over the past couple of years, completely deleveraging. More importantly, we've fixed a lot of our debt. 75% of our debt is currently fixed. 25% of it is floating. Of the 25% that is floating today, one, which is a term loan that matures in 2022, we're gonna refinance that. We could keep the rates exactly as is actually, and it's got a cap on the upper end, so it doesn't really impact the higher rate environment. The other two items that are floating, we're actually looking at a securitization as we speak. We're in the market today. The rate is probably gonna be higher. At 70% leverage, you're probably gonna be closer to 4.75, maybe 4.85. But it's still a positive spread, and it's still lower than what we're buying at. We're gonna try to fix for as long as we can, and we're really in a great position. Apart from that, really the next big maturity is 2024. We have time to start thinking about options there. Yeah. Nick, the only thing, the other thing I would chime in, it's possible that if we remain in a you know a high rate environment, relatively high rate environment for a longer period of time, it's possible that in our joint ventures, certainly in new joint ventures, that we target lower leverage, right? That's another way to kind of bring down the effective cost of debt. That might be something we're gonna consider with our joint venture partners going forward. Thank you. Your next question comes from the line of Richard Hill with Morgan Stanley. Your line is now open. Hey, team. It's Adam on for Rich. Look, I kind of just wanted to ask a little bit about kind of actually what you just mentioned, Gary, the kind of fundraising, and ask if you could remind us what the kind of timeline is for fundraising for new JVs potentially, and if that timeline has changed or shifted at all, you know, as you've kind of executed to plan, right, and kind of been buying this kind of 8,000 homes per year, you know, kind of executing on that plan. We're actually going a little faster than we thought. One of the reasons is the home prices have moved up, so we're putting out capital a little faster than we initially anticipated in setting our three-year target. We would expect to get to that kind of 50,000 home mark or certainly invest all the capital in the JVs by the end of 2024, and it's possible that that's gonna happen sooner. That puts us in a position then to raise new funds sooner. You know, I can't say specifically whether it's half a year or a year faster, but could be meaningfully faster than what we're currently projecting. The conversations we're having with our existing partners are very bullish. They love this sector. We perform extremely well for them. They wanna put out a lot more capital. The real governor is, you know, how much capital can we manage? You know, how many homes can we buy? Do we have the operations in place to manage that growth? The capital's there from our partners to keep on going. That's something that's really exciting. You know, this year we're not really focused on fundraising with the existing, you know, JV two or Homebuilder Direct. We're putting the capital out. What I will tell you is that on the Build-to-Rent program, we are now nearly fully committed on what we call THPAS JV-1 our joint venture with Arizona State Retirement System. That venture is now fully committed, and so we're now in a position to think about launching a successor vehicle. That's something you should be expecting later in the year. Great. No, that's really helpful. I guess just switching gears, you know, with turnover kind of seemingly lower every quarter, right? I think just a hair over 14% in April. Wanted to ask if that, you know, kind of your assumptions going into the year on same home expenses, you know, if kind of given what turnover's done, if that's gonna change your view on, you know, what some of the kind of the controllable, right, or some of those operating expenses might be. I mean, going to the future, right, if turnover kind of holds at these levels, right, kind of given the tight housing market, if that maybe changes your kind of long-term view about, you know, turnover expense, some of those other expense lines that may be impacted. Well, I'll let Kevin maybe chime in on some of the expense line items, but I just say high level that never in a million years did I ever think we'd be at this level of turnover. I mean, it's mind-blowing. I remember Kevin saying a few years ago, maybe we could get below 25%, maybe, right? Now we're below 15%. Like, I mean, we just never projected this. We never thought this would happen. It's partly a function of how much demand's out there and the fact that we're self-governing on renewals, right? I think that our team is doing such a great job on the quality of the home and the service that, you know, people just don't wanna leave. It's just such a great, you know, form of housing. I think that's gotta change our expectations, but I still think that 15% just seems so low. I think when we look at our projections, we're typically looking, you know, maybe 20% this year, 18%-20% this year. If we looked at the kind of a longer term forecast, let's say out to 2024, we'd probably be projecting 25% turnover. To give you some sense of, you know, how that will, you know, impact the various line items. 25%, I would say maybe 18%-20% this year and 25% longer term. Anything else you wanna add, Kevin, on that? No. I mean, to your projections, I think that we will see turnover go up a little bit. You know, people have been hunkering down, because of COVID, and that psychology now is changing, and so we're seeing people starting to move a little bit more. I think that I don't see the turnover staying this low. I think it'll get back to, like, what Gary was saying because we'll start seeing decoupling happening from the COVID era. I mean, we're already starting to see it a little bit. You know, we'll see turnover go up a bit. It's still gonna stay in the 18%-20%, most probably. That's gonna help mitigate our costs. You know, the other things that we're doing, just so that you know, to help our costs going into the future is we've increased the work orders done in-house. We're up to 70% of work orders that our team that we get, you know, into our centralized office. 70% of that is done by our in-house techs. We also have national purchase contracts that have helped us have shielded with some of the inflationary pressures. We're seeing in some cases the cost of appliances, for instance, going up 30%, and we've got locked in prices at 5%-7%, 8%. It's giving us a hedge on that. We're also. You know, the average age of our homes are 24 years right now, where the homes we're buying these days are 14-15 years old, and we've seen that translate into lower costs by 20% or so. We've also rolled out what we call an intelligent virtual assistant, IVA, in concert with a permission to enter. That allows us to more efficiently and quickly respond to work orders, provides better customer service. We're getting into houses faster, so, you know, increasing satisfaction. It's also helping us push the number of homes our techs see per day and per week, which makes us more efficient. In addition to the lower turnover that we're experiencing, we're constantly thinking from a technology standpoint and process improvement standpoint to keep our costs low. It's really helpful, guys. Thanks again, and really appreciate it. Great. Thank you. Your next question comes from the line of Brad Heffern with RBC. Your line is now open. Hey, everyone. You've talked about a potential recap of the U.S. multifamily portfolio in the past. I'm curious, has the likelihood of that changed just given all the capital markets turmoil, and how does that affect the funding picture for 2022? Yeah, we're still looking at it. It's still something we'd like to do. It certainly has become a little bit more difficult, or perhaps a little bit less accretive, given the underlying rates have increased significantly, as you know, Brad. It's something we, you know, we still think makes sense. If you look at our IFRS carrying value, which is about $1.7 billion-$1.75 billion, I mean, it's significantly above, you know, where we bought the portfolio, where we syndicated it, and is obviously much higher. We've got about $800 million of debt in place on a, let's say, $1.7 billion-$1.75 billion portfolio valuation, which is conservative, quite conservative, I would say. There seems to be room there to recap. Again, a little bit more difficult than where we were a couple of months ago or a month ago, but something we still think makes sense and something we're gonna continue to look at. Yeah. If I could add to that as well is, let's talk about this year. You know, we talk about our commitment of buying up to 8,000 homes. If you really put that in, mathematically, we're looking for another $200 million of equity that we need to fund our portion of the growth. AFFO after dividends provides us with another $50 million this year, so our shortfall this year is really about $150 million. We are in a great liquidity position. Our credit facilities and the unrestricted cash, we have about $558 million available for us, so we could easily absorb all of that without having to go to the capital markets or do any of these dispositions either. This is just a plus for this year. Okay. Got it. Thank you for that. I'm curious, you know, you mentioned several times the 13,000 applications for 200 spots. I'm curious if you've changed credit standards at all, you know, trying to upgrade the credit quality of the portfolio, just given all the macroeconomic concerns. No, we really haven't. I mean, we're keeping with the same program that we've had. We think they're pretty strict. We currently turn down Between 48%-52% of applicants. We've from the very beginning really cared about the propensity to pay of our residents, and we've been maniacal in our kind of underwriting process. We took that. We used to underwrite across all the different offices that we had around the country. We centralized that, so we had a consistent approach and that we were, you know, living within all of our fair housing laws. You know, we've found that it's really been helpful. When COVID hit and the moratoriums hit, we couldn't, you know, use all of our normal collection processes that, you know, hurt a little bit, but we're now improving markedly since we started, you know, we started going back to our normal practices. We're going to start seeing our delinquency rate come down pretty good. We haven't changed, you know, our practices on how we're underwriting. We still see that the rent-to-income rate is at about 23%. It's been 22%-23% all along, and we've been really pretty happy with our resident base. Okay. Thank you. Your next question comes from the line of Jade Rahmani with KBW. Your line is now open. Thank you very much. April numbers sounded good, but has there been any moderation in demand, either in number of leads, conversion ratios from number of leads, or renter willingness to accept asking rent? Secondly, could turnover in some ways reflect a weakening in demand since there's such a gap between new lease rent growth versus renewal rent growth? I'm going to answer the first question, Jade, and just say no. There's been no change. If anything, we're going into the stronger spring leasing season, and in some ways, trends remain as robust, if not more robust, as where they were. No change at all. I will say this, if you think about the, you know, you think about the for-sale housing market versus the rental market, the for-sale market's probably never been more expensive. If you go back to 2020 or, sorry, 2000, let's say back to the millennium, it's never been more expensive if you look at housing on a price-to-income basis, right? For-sale housing on a price-to-income basis has never been more expensive. Conversely, rental housing has never been more affordable on a rent-to-income basis. We just talked about, you know, being at 22%-23% rent-to-income. It's never been more affordable going back to 2000. We're really in a great position to continue to drive the business. There's insatiable demand. We've got pricing power. We're using that responsibly, as you know. We could be pushing our renewals much harder. We're not, so we're building in that loss-to-lease. I think the low turnover, I think, in my opinion, just really reflects the fact that we are self-governing. You know, when we're giving people 6% or 6.5% renewals, they go around and they look around at what else can they get in the market, and they realize they're getting a good deal and they stay. They like the product and they like the service. They like what we do and there's no reason to go anywhere else. No, we don't. We think the low turnover is more a reflection of the way we're running the business. Thank you. On the supply side, I see positives and negatives, and I wonder how you see it. On the existing home market, something like 80% of mortgages have a rate less than 4.5%, creating a very large disincentive to move. On the other hand, you know, every company in the space seems to be chasing the Build-to-Rent model. I even know mortgage REITs that are lending money in that asset class, as well as home builders developing that asset. Yet the supply chain issues might be forestalling the onslaught of that supply. How do you think about the supply picture? Is there an environment later in the year where supply chain gets relief and there's suddenly an avalanche or a big inflow of new, newly developed rental homes that deliver to the market? Well, I'm going to let Andy talk about supply of Build-to-Rent. But I think before that, I would just say this. On the existing home market, which obviously has a major impact on our ability to buy homes, right? Because that's really what's driving our growth. If you think about the 8,000 homes that we are going to buy this year, you know, roughly seven out of eight are existing homes. That market over the last couple of years, including up until today, has never been tighter. It's never been a more difficult time to buy existing homes, maybe ever, than it has been in the last couple of years. We are having no issue hitting our 8,000 homes that are 5%-5.5% cap rates. I just want to be clear on that. I think if anything can happen to loosen the market, I would agree with you. More people are likely to stay in place. You know, maybe with considerably higher mortgage rates, it gives us an opportunity. Maybe it helps loosen the market a little bit. We'll see. I mean, the market's so tight, I don't know if it can get any tighter. It probably over time gets looser. If it gets looser, that's better for us. It allows us to be more flexible with our acquisitions. It might allow us to buy at higher cap rates, especially, as I said, if rent growth starts to now outpace home prices. Build-to-Rent is a different animal. Andy, why don't I turn that over to you? It's true. There is, it's, and when Jade's saying there's a lot of competition with Build-to-Rent. Yeah. Certainly. You know, I would add, though, new home supplies are currently at historic lows as well, right? There's been very significant demand on the retail, new home sales, as well as increasing A number of groups pursuing Build-to-Rent while you have supply chain and delivery delays. Both supplies are less than a month, right? Kind of historic, you know, at forever lows in terms of supply. Our sense on new home supply is that it will increase over time, but it takes a long time. Building more homes is like an aircraft carrier. It takes a long and a large amount of time to turn or increase that supply. We do think we'll see a little more supply come online over maybe the latter part of this year and into the following year, but it comes on very slowly. A few hundred homes here, a few hundred homes there, and there's still a very large amount of blocking and tackling required to acquire gain approvals for developing sites and then work them through the development and construction timelines. It's probably a couple of years or more before those supplies go back to normal, you know, from historic lows. We don't see them skyrocketing quickly. It just takes too long to mobilize this business to move supply quickly, and we think it's gonna take quite a while to do so. Jay, I'd just to add one more comment on that. You know, you talked about supply chain and, you know, maybe supply chain loosening later this year or early next year. One major element of home building is labor, okay? Even if, you know, all of the appliances or windows that are causing some delays do show up, there's just a massive shortage of labor available in the United States, in part due to lack of immigration over the last several years that isn't being solved. In spite of, you know. Think about the last several years, where before the supply chain shortages, there was still a demand for new housing, but a major constraint was labor, and we don't see that problem being solved anytime soon. Your last question today comes from the line of Stephen MacLeod with BMO Capital Markets. Your line is now open. Thank you. Good morning, guys. Lots of great color, so thank you. I just had one question for you, and it relates to something, Gary, that you mentioned with respect to the infrastructure that you have in place to support the single-family business, which I know you've invested a lot and built quite a significant platform. How many homes do you think you can support on the existing infrastructure, you know, without having to add incrementally? You know, I think we could buy with the existing platform. I mean, the platform's very scalable, right? In terms of the technology. We've got an incredible tech-enabled operating platform. What does need to get scaled is the people component of it, right? Remember, when you go and buy homes, you then, if you buy a lot of homes, you need more people to renovate those homes, which involves more supers to oversee the renovation, and obviously you need more techs to ultimately turn and repair those homes. There is a real significant people component, which is why we're continuing to hire aggressively. We've got, I would say, the team and the platform in place to acquire 8,000 to probably 10,000 homes a year. If we wanted to go faster than that, we'd have to invest certainly more in our people and go quick and go faster on the hiring front. 8,000-10,000 Is where we could be. I think given the capital markets environment, we're probably and based on our guidance, we're probably much more likely to be closer to 8,000 than 10,000. If we were in a better capital market environment, we could probably go faster based on the platform and people in place. I hope that answers your question for you. One way either way, it's significant growth. And again, we believe that the growth, you know, more growth and less growth is accretive for our business. Yeah. Okay. So it sounds like the real variable cost component is on the people. With the technology platform you have, you can support above 50,000 homes. It's more just the blocking and tackling of buying, renovating, and managing the home specifically. Absolutely. For the transaction piece. Yeah. Even with the technology to buy a home, right, which is pretty impressive, we don't buy sight unseen, right? As soon as we put a home under contract, we need to send someone there to inspect the home. That requires people, right? We renovate the home to a common standard. That requires people. We've got to turn the home and service the home. All of that requires people. That is the hard part of the business. It's actually not the acquisitions. That needs to be scaled appropriately. We're actually finding it, last year was a much tougher time to hire. This year we're hiring great people, great techs, and we've had no issues on the hiring front. Even in this very tight supply market, no issues on the acquisitions front either. Great. Thank you. Thank you, Steve. There are no further questions at this time. I'll turn the call back over to Gary Berman, President and CEO of Tricon Residential. Thank you, Emma. I'd like to thank all of you on this call for your participation. We look forward to seeing what the markets look like when we speak with you again in August to discuss our Q2 results. Thanks, everybody. This concludes today's conference call. You may now disconnect.