European Residential Real Estate Investment Trust

Welcome to the European Residential Real Estate Investment Trust first quarter 2024 results conference call. My name is Carla, and I'm going to be coordinating your call today. During the presentation, you can register to ask a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to Nicole Dolan, Investor Relations. Nicole, please go ahead.

Thank you, operator, and good morning, everyone. Before we begin, let me remind everyone that during our conference call this morning, we may include forward-looking statements about expected future results and the financial and operating results of eREZ, which are subject to certain risks and uncertainties. We direct your attention to slide two and our other regulatory filings for important information about these statements. I will now turn the call over to Mark Kenney, Chief Executive Officer.

Thanks, Nicole, and good morning, everyone. Joining me this morning Jenny Chow, our Chief Financial Officer, and Karim Farouk, our Managing Director. Let's turn to slide four and get started. Strong operational performance has steadily reinforced the eRES platform since inception, and we're pleased with another on-track order. Our residential suites were 98.5% occupied on March 31st, 2024. This is consistent with the previous period. as we're continuing to keep certain unoccupied suites offline to either enhance values renovation or potentially sell as part of our optimization strategy. Our occupied average monthly rent was 1,068 euros at current quarter end, representing an increase of 6.7% versus the same property portfolio on March 31st, 2023. Once again, This is above our target range of 3% to 5%, reflecting the tight rental conditions in the Dutch housing market, which are showing no signs of softening, as well as e-Res' ability to maneuver within its complex regulatory framework. Turning to slide five, I'll provide a brief update on investment activity during the first quarter. We're pleased to have closed on 24 single suite dispositions during Q1 for combined gross proceeds of 7.6 million euro, which represents a strong premium to the previously reported IFRS fair values. Subsequent to period end, we sold an additional 42 suites for an aggregate consideration of 10.8 million euro, excluding transaction costs, which is again in excess of fair value. We're excited to be accelerating our progress on this strategic initiative, and we'll continue to ramp up our efforts in order to generate incremental capital, primarily to pay down our credit facility debt and sturdy our future financial position. On our investment portfolio, fair value decreased by 0.5% this quarter to $1.67 billion. Persisting inflationary and interest rate pressures alongside political and regulatory uncertainty in the Netherlands drove up the portfolio's implied cap rate. This was offset by higher forward NOI. The residual change in fair value was due to individual unit sales, all in all. Our diluted NAV per unit remained relatively stable at 289 euro at March 31st, 2024. I'll now turn things over to Jenny to walk through our financial performance.