BSR Real Estate Investment Trust

Good morning. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the BSR REACH third quarter 2025 fiscal results conference call. All lines have been placed on mute to prevent any background noise. After the management's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the star, then the number two. Thank you. I would now like to turn the conference over to Spencer Andrews, Vice President of Investor Relations and Marketing. Please go ahead, sir.

Thank you, Tina, and good morning, everyone. Welcome to BSR Reef's conference call to discuss our financial results for the third quarter ending September 30, 2025. I'm joined on the call today by our CEO, Dan Oversee, our Chief Financial Officer, Tom Serbis, and our Chief Operating Officer, Susie Rosenbaum, who are all available to answer your questions after our prepared remarks. Before we begin, I want to remind listeners that certain statements made on this conference call about future events are forward-looking in nature. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. In addition, we will reference certain non-GAAP financial measures that we believe are useful supplemental information about our financial performance. For more information, please refer to the cautionary statements on forward-looking information and a description of our non-GAAP financial measures in our news release and MD&A dated November 5, 2025. Dan, over to you.

Thanks, Spencer. The third quarter represented a significant inflection point for BSR as the REIT completed its redeployment of capital midway through the quarter, continued the integration of our newly acquired assets, and, frankly, powered through a softer leasing environment than most anticipated. Despite some continued challenges in the macro-level operational backdrop, the REIT's capital allocation and stewardship has positioned our unit holders for upcoming growth. The results will speak for themselves, as they have many times in the past. when we have executed similar capital allocation decisions. The most recent example being our cancellation of approximately 20 million units, or 39% of the outstanding units in the REIT since 2022. To that end, in the third quarter, same community NOI increased 2.7% compared to Q3 last year. Same community weighted average occupancy was 94.3%. Our retention rate was 58.2% at quarter end. a further 80 basis point expansion from 57.4% at the end of Q2. Leasing momentum at Austin lease up Aura 3550 continued, with occupancy reaching 86.6% at quarter end, up from 59.7% at the end of Q2. We also experienced continued green shoots on the rate front. Blended same community rental rates increased 0.4% over prior leases. representing the first time that blended rental rates have increased since the third quarter of 2024. And we acquired the Ownsby for $87.5 million during the quarter. The Ownsby, which comprises 368 apartment units, is located in the Dallas suburb of Salina, which was the fastest growing city in the U.S. in 2023 and grew by a further 19% in the 12 months ending July of 2024. The fundamentals of our business are undeniable. Though continuing to percolate a little longer than originally anticipated, supply will materially exit the picture in the relative near term. As I highlighted last quarter, CoStar and several other data providers have adjusted their expectations for new deliveries from Q4 25 through 27, which should ultimately yield additional elasticity and pricing power for our apartment units. Therefore, we believe that This is just the beginning of a period of consistent growth in rental rates. Above and beyond rental rates, we have significant internal growth opportunities in front of us, given the going-in occupancy of the assets we acquired in 2025. As our team stabilizes these new properties and optimizes our existing best-in-class Texas portfolio, unit holders stand to benefit. I'll now invite Tom to review our third quarter financial results in more detail. Tom?