Apartment Income REIT Corp.

Good day. Welcome to the AIR Community's first quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to Lisa Kohn. Please go ahead, ma'am.

Thank you, and good day. During this conference call, the forward-looking statements we make are based on management's judgment, including projections related to 2021 expectations. These statements are subject to certain risks and uncertainties, a description of which can be found in our SEC filings. Actual results may differ materially from what may be discussed today. We will also discuss certain non-GAAP financial measures, such as funds from operations. These measures are defined and are reconciled to the most comparable GAAP measures in the supplemental information that is part of the full earnings release published on AIR's website. Prepared remarks today come from Harry Considine, our CEO, Keith Kimmel, our President in Charge of Property Operations, and Paul Belden, our Chief Financial Officer. Other members of management are present and will be available during our question and answer session, which will follow our prepared remarks. I will now turn the call to Terry Considine. Terry?

Thank you, Lisa. And good morning to all of you on this call. I thank you for your interest in AIR. We had a solid first quarter, and more importantly, we have excellent prospects for the full year and beyond. In our markets, fourth quarter results marked an inflection point. First quarter was much better. Second quarter, to date, shows further acceleration. We expect AIR to thrive in this economy. We created AIR to provide investors with the most efficient way to invest in multifamily properties for a current cash return and long-term capital appreciation. Our plan for AIR includes a number of specific objectives which we communicated to investors. We've accomplished many already. We're working to advance others but their completion remains in the future. Here's what we've already achieved. We chose and have a business model with minimal execution risk and without complex investments. Our business is simple and highly transparent. We own a high-quality and diversified portfolio of stabilized multifamily properties. Its quality and resilience have been tested and confirmed by overcoming the challenges of the past 12 months. We are the best in property operations. We have a long record of measured customer satisfaction, flat controllable costs, and peer-leading margins. Results year-to-date confirm the excellence of Keith's team and are the reason for the recent increase in guidance for full-year FFO. We want our leverage at a low cost. Our cost of borrowing, aided by low market rates, was already low. Our new $1.4 billion bank credit and term loan makes it lower, with an all-in cost of 1.6%. We want to be efficient, with G&A as a percent of GAV, the lowest in the sector, and at 15 basis points, it is. We targeted higher FFO based on lower overhead costs and elimination of lease-up drag. It's working. We believe a high quality of earnings supports an improved dividend payout ratio. Our year-to-date results have almost no non-recurring or non-cash income. We want flexibility if income tax rules change, as many now recommend. We are glad to have refreshed our tax bases. We have other objectives where we're making progress but still have work to do. We want our leverage to be low at a level comparable to peers. We made a good start when our recent equity raise lowered leverage by almost one turn. We're on track to reach our long-term target of leverage to EBITDA 5.5 times by the end of this year, a full year ahead of schedule. We want to increase FFO and cash dividends by their organic growth, and also the accretive acquisition of well-located, stabilized properties. In a dynamic economy where some markets struggle with stagnant demand, high taxes, and an uncertain rule of law, we are interested to reallocate capital to markets with growing populations, lower taxes, and less political risk. Our cost of equity capital is much improved. We sold unregistered shares earlier this week at a price that supports accretive investment In a world awash with liquidity, our competitive advantage is our superior property operations. We're committed to excellence in corporate governance. We've only publicly traded Maryland apartment REITs out of the MUDA provisions that permit a classified board. We're one of three to separate the role of chairman and CEO. We've received numerous recognitions for our independent, diverse, and engaged board. With four new directors in the past five years, we're committed to board refreshment and more is forthcoming this year. We believe our work is more than a business. It's also a mission to serve others. We're noted for our numerous programs for community service and have been voted a best place to work for the past eight years. We're committed to further progress on the achievement, measurement, and reporting of our ESG goals. So one thing might be promises made, promises kept. But I also like the best is yet to come. I'm upbeat about 2021 and see bright prospects beyond. These good results and future opportunities are due to the hard work and respectful collaboration of my Air teammates. I thank each of you for your hard work to give birth to Air and to deliver on its promise. I celebrate your commitment each and every day, to our residents, our shareholders, and to each other to be the best we can be. AIR is best in class because you, my AIR colleagues, are the very best. I'm proud of you and grateful to be your teammate. With that, I'll turn the call to Keith Kimmel, head of property operations. Keith. Thanks, Terry.