D/B/A Centerspace

Hello, everyone, and welcome to the CenterSpace Q3 2025 earnings call. My name is Ezra, and I will be your coordinator today. If you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I will now hand over the call to Josh Glatus from CenterSpace to begin. Please go ahead.

Good morning, everyone. Center Spaces Form 10-Q for the quarter ended September 30, 2025, was filed with the SEC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure package has been posted to our website at centerspacehomes.com and filed on Form 8-K. It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on management's current views and assumptions. These statements are subject to risks and uncertainties discussed in our filing under the section titled Risk Factors and in our other filings with the SEC. We cannot guarantee that any forward-looking statements will materialize, and you are cautioned not to place undue reliance on these forward-looking statements. Please refer to our earnings release for reconciliations of any non-GAAP information which may be discussed on today's call. I'll now turn it over to CenterSpace's President and CEO, Ann Olson, for the company's prepared remarks.

Thank you for joining us today. I'm here with our SVP of Investments and Capital Markets, Grant Campbell, who will provide some comments on the transaction market, and our CFO, Bharat Patel, who will discuss our guidance and balance sheet. CenterSpace's third quarter and year-to-date results are a testament to the health of our smaller regional markets, our operating platform, which helped us drive exceptional expense control, and the strength of our team, which has remained focused, even in light of the significant sale and acquisition activity that we have undertaken. For the third quarter, we reported 4.5% year-over-year growth in NOI within our same-store portfolio. This is being driven by solid increases in revenue coupled with excellent execution on expenses. That said, due to timing adjustments related to our planned strategic transactions and associated G&A costs, we are lowering the midpoint of our core FFO guidance by $0.02 to $4.92. Rob will further discuss the impact of our capital recycling activities when he speaks to our outlook. In June, we announced strategic initiatives that included acquisitions in both Colorado and Utah and dispositions that reduced our portfolio concentration in Minnesota. We expect to close on the sale of seven communities in the Minneapolis area yet this month, at which time we will have recycled approximately $212 million of capital and increase the quality and efficiency of our portfolio. While our current cost of capital has impeded our ability to execute on external growth opportunities, We are committed to enhancing our market position and value for our shareholders. We have many levers we can use to do that, and we will remain disciplined and flexible. Operationally, our portfolio continues to benefit from the stability of our Midwest market. Like in 2024, these rates peaked in mid Q2 and remain positive for us, up 1.3% on a blended basis in the quarter and 1.6% year to date. Retention has exceeded our initial expectations, hitting 60% in both of our peak leasing quarters. In our largest market of Minneapolis, results benefited from the dual tailwinds of improved occupancy and increasing rental rates, where we saw improvement in both new and renewal leases in the quarter, leading to blended increases of 2.1%. In our other markets, North Dakota continues to be a standout, with portfolio leading blended increases of 5.2% in the quarter. Our Denver portfolio has been challenged by supply pressures, and Q3 blended lease rates were down 3.5%. Digging more into Denver, we believe our experience there is truly the result of supply. Based on absorption data, 2025 has been Denver's second best year ever. In our portfolio, we're seeing higher closing of leads with our Q3 lead to lease of 275 basis points year over year and higher tenant incomes, which are up 7% versus last year, as well as a 70 basis point improvement in our occupancy over Q2. Some of that occupancy was driven by our decision to offer concessions in this market. We anticipate Denver will return to a more normal environment as we move through 2026, and we remain optimistic. I'll ask Grant to comment on the state of the transaction market.