Dream Residential Real Estate Investment Trust

This conference is being recorded. Cette conférence est enregistrée.

All participants, please stand by. Your meeting is ready to begin. Welcome to the DREAM Residential REIT Third Quarter 2024 Results Conference Call on Thursday, November 7, 2024. Please be advised that all participants are currently in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. During this call, management of Dream Residential REIT may make statements containing forward-looking information within the meaning of applicable securities legislations. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond DREAM residential risk control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in DREAM residential risk filings with security regulators, including its latest annual information form and NDNA. These filings are also available on Dream Residential REIT's website at www.dreamresidentialreit.ca. Your host for today will be Mr. Brian Pauls, CEO of Dream Residential REIT. Mr. Pauls, please proceed.

Thank you. Good morning, everyone, and thank you for joining us today for Dream Residential REIT's third quarter 2024 conference call. Speaking with me today are Scott Schumann, our Chief Operating Officer, and Derek Lau, our Chief Financial Officer. The REIT delivered stable operating performance for the quarter. Comparative properties NOI growth was 2.5% year-over-year, primarily driven by higher rents and completed value-add renovations. Year-to-date, comparative NOI growth was 4.2% within our 3% to 5% target for the year. Comparative properties NOI margin was 51.1% compared to 51.4% in the prior year comparative quarter. We remain focused on managing controllable costs as current operating conditions have impacted top-end revenue. FFO per unit was 18 cents in flat year-over-year. Occupancy at September 30th, 2024 was 93.3% and was flat year over year. This represents a 70 basis point decrease quarter over quarter as we advance rents late in the summer ahead of shifting towards seasonal stability beginning in the fourth quarter. Average in place rent of $1,175 per suite represents growth of approximately 1% from Q2 2024 and 2.8% year over year. Lended lease tradeouts were 2.5%, an increase of 30 basis points from Q2 2024. The increase was driven by Oklahoma City, which experienced tradeouts of 4.1%, followed by Cincinnati and Dallas at increases of 2.3% and 1.2%, respectively. Renovations were completed on 42 suites across the portfolio and 140 suites year-to-date. We have 31 suites under construction as of the end of the quarter. For Q3 2024, average lease tradeouts on renovated suites were 6.9% compared to a decrease in classic suites at 1%. Overall, Q3 2024 was a stable quarter as we face uncertain operating conditions. We remain focused on operating and managing our assets and are pleased with the overall performance. I will now turn it over to Scott to provide an operations update for the quarter. Scott?