Apartment Income REIT Corp.

Good day and welcome to the Air Community's second quarter 2021 earnings conference call. All participants will be in listening mode. Should you need assistance, please signal a conference specialist by pressing the spot 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 your touchtone phone. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then two. As a reminder, today's call is being recorded. I'd now like to turn the conference over to Lisa Cohn. Please go ahead, ma'am.

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 FFO. These are defined and are reconciled to the most comparable gap measures in the supplemental information that is part of the full earnings release published on AIR's website. Prepared remarks today come from Harry Constantine, our CEO, Keith Kimmel, our President in Charge of Property Operations, Paul Dutton, our Chief Financial Officer, and other members of management are present and will be available during our question and answer session to follow our prepared remarks. I will now turn the call to Terry Considine. Terry?

Thank you, Lisa, and thank each of you on this call for your interest in air. Business is good, and it's proof of a very good quarter when the most dramatic glitch is poor sound quality on our call. The most important fact of today's apartment business is that strong consumer demand is driving higher rents and higher occupancy. And the most important question for apartment investors is, how much of a higher top line will reach my bottom line? AIR with best-in-class margins, flat, controllable operating expenses, and low G&A provides peer-leading efficiency in the flow-through of revenue to FFO and cash dividends. AIR is on track to accomplish and exceed its 2021 goals. Keith's property operations theme was superb again. Notwithstanding bad debt resulting from California laws and local ordinances, property revenue grew year-over-year in June and is accelerating to be up year-over-year for the full year. Controllable operating expenses are on track to be down for the full year again, resulting in a return to full-year NOI growth. AIR purchased City Center, upgrading our portfolio and showing the power of great operations. AIR issued $300 million of equity to reduce leverage, with a $600 million balance expected by year end from selling properties into a rising market. The result was a beat to first half FFO guidance, up by 7%, an increase to second half FFO guidance up by 7% and a raise to quarterly dividends up by 2%. AIR is well positioned for an excellent second half. AIR is even better positioned for an excellent 2022. Portfolio quality is good and well diversified. Loss to lease promises substantial rent growth the dilution of leverage reduction will be behind us. As always, the key is the air team and its focus on operational excellence. To my colleagues in Denver and my teammates in the field, well done and 10,000 thanks. And now to explain what we did, how we did it, and what we see ahead, I'd like to turn the call to Keith Kimmel, head of property operations. Keith. Thanks, Terry.