Dream Residential Real Estate Investment Trust

Welcome to the DREAM Residential REIT First Quarter 2025 Results Conference Call on Thursday, May 8, 2025. 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 zero. During this call, management of DREAM Residential REIT may make statements containing forward-looking information within the meaning of applicable securities legislation. 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 REIT's 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 REIT's filings with securities regulators, including its latest annual information form and MDNA. 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 REITs. Mr. Pauls, please proceed.

Good morning, everyone, and thank you for joining us today for Dream Residential REITs first quarter 2025 conference call. Speaking with me today are Scott Schuman, our Chief Operating Officer, and Derek Lau, our Chief Financial Officer. Q1 2025 results were largely in line with management's expectations. Comparative NOI growth was 0.8% year-over-year. Comparative properties NOI margin was 50.9% compared to 50.6% in the prior year comparative quarter. FFO per unit was 17 cents and largely consistent on a year-over-year basis. Occupancy has remained steady at 93.3%, and during the quarter, we completed nine renovations in Cincinnati with return on invested capital exceeding our targeted range of 12% to 15%. We are targeting renovations on another 10 units in the second quarter. We expect to continue with our current renovation velocity and adjust where necessary to reflect market conditions. While much of the U.S. has experienced strong supply growth, we have been able to maintain occupancy and continue to grow NOI. Economic and operating uncertainties may persist over the near term. However, we are cautiously optimistic that national net absorption will continue. At DRR, we are already starting to see increased activity in demand in the spring leasing season. The properties continue to perform well, and with low leverage and a strong balance sheet, we are well positioned for our future. In March, we retained TD Securities as our financial advisor. Our strategic review is well underway, and we will provide further updates when available. We continue to be focused on closing the gap between our trading price and the intrinsic value of our units. In the meantime, we will maintain our normal course of operations and execute on the REACH core strategies. I will now turn it over to Scott to provide an operations update for the quarter. Scott?

Thank you, Brian. We are pleased to report $6.1 million net operating income and 50.9% NOI margin during Q1 2025. This represents 80 basis points of comparative property NOI growth compared to 2024. Revenue grew 30 basis points, operating expenses reduced 20 basis points, and margin increased 60 basis points, all favorable compared with Q1 2024 results one year ago. 12-month comparative property NOI growth topped 3.1% compared with the preceding 12-month period ending in March 2024. At the regional level, quarterly year-over-year controllable NOI was stable in our Dallas-Fort Worth assets, but it grew 1.6% in our Oklahoma assets and 2.3% year-over-year across our Cincinnati communities. Revenue growth resumed in Q1, increasing 1.4% above last quarter, 0.3% higher than last year, and 1.6% better than the preceding 12-month period. At the property level, net rental income strengthened 60 basis points year-over-year and 40 basis points quarter-over-quarter. Our property teams continue to perform exceptionally, managing controllable operating expenses on par with one year ago and with the trailing 12-month period. Across non-discretionary cost categories, we are experiencing increases in utility rates and usage. However, early indications point to expected savings versus forecast for both the insurance and property tax categories during the latter half of this year. First quarter leasing conditions were challenged. Occupancy remained steady at 93.3%. Renewals at a rate of 58% were prioritized and proved durable. The 0.4% blended tradeouts reflected a combined effect from winter seasonality and macro supply-driven softness. The 8 percentage point spread between new lease tradeouts and renewal tradeouts was not insignificant, but by all appearances, it was a short-lived divergence. Nationwide absorption has now swung positive for the first time in three years. Our March and April leasing traffic and tradeouts have notably strengthened. Thus far in Q2, new and renewal tradeouts are both in positive territory. It appears that spring leasing season is restoring and the drop off of new deliveries is beginning to favorably improve demand. Market rent gained a lease ended Q1 at 3%, though that has already expanded above 4% thus far in Q2 in sync with increasing spring demand. Both incentives and delinquency were slightly higher than Q1 2024, but retreated favorably down from Q4 2024. Property management continues to integrate advanced software into tenant screening processes, which will reduce delinquency and improve tenant demographics over time. Last year, the value-add program paused in two of our markets, yet it gained momentum in our Cincinnati market on a limited scale. Nine suites were renovated during Q1, achieving 34% trade-outs and high team returns on invested capital. We will continue construction at a disciplined pace and carefully monitor conditions for next steps in our value creation strategy. The fundamentals of our business hold steady and positive, occupancy, rents, and net income. Our business is generating safe cash flow through near-term uncertainties. The shifting dynamics from supply towards demand present an optimistic landscape for our apartment communities. It is my pleasure to turn things over to Derek Lau, our Chief Financial Officer.