BSR Real Estate Investment Trust

Good morning. My name is Regina, and I will be your conference coordinator today. At this time, I would like to welcome everyone to the DSR REIT First Quarter 2026 Financial Results Conference Call. All lines have been placed on you to prevent any background noise. After 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 star one again. 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, and good morning, everyone. Welcome to BSR Reads Conference Call to discuss our financial results for the first quarter ending March 31, 2026. I'm joined on the call today by our CEO, Dan Oberspeed, our Chief Financial Officer, Tom Service, 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 May 13, 2026. Dan, over to you. Thanks, Spencer.

We believe that the first quarter marks the beginning of a period of significant momentum for BSR REITs. Our same community NOI and NOI margins strengthened sequentially from the fourth quarter of 2025. And we've made progress in bringing our 2025 acquisition class to stabilization, including further lease up at the Ownsby, our August 2025 lease up acquisition. We also continue to ramp up our bulk internet and valet trash initiatives, two key drivers of organic growth. And externally, rental market dynamics shifted further in our favor. Recapping the first quarter, same community NOI increased 11% from Q4 last year due largely to the normalization of expenses, which had an outsized adverse impact on Q4 of last year. Same community weighted average occupancy ended the quarter at 94.3%, flat to the end of 2025. Same community blended rates improved 30 basis points in Q1 from Q4. And I would add that this trend continued in April. improving another 80 basis points versus Q1 results. Our retention rate was 59.8% at quarter end, a 30 basis point expansion from the end of 2025, and a significant increase from 56.9% a year earlier. Physical occupancy at our August 2025 lease up reached 73.1% at the end of March, up from 70.4% at the end of December. And importantly, We began the ramp up of bulk internet at five of our properties in earnest, which is already showing positive results in our other income line item. The results we posted last night reflect the exact momentum we spoke to last quarter and underlie the fundamental shift we see in our business. I will remind everyone that our December investor presentation laid out and provided transparency on our organic growth plans. Yesterday's results also reflect the very early innings of those returns. While there's still a lot of upside in each of the initiatives we laid out, I'm proud of the tangible progress we've made to date. Even more encouragingly, fundamentals continue to improve in our core markets. Tradeouts were once again improved year over year and have demonstrated largely positive momentum. Frankly, the months of May and June will tell us a lot more about the exact extent of the health of the multifamily market. But sitting here today, we're generally encouraged by the results to date. Given our hand-selected high-quality portfolio, our value-adding lease-up, and our operational enhancement initiatives, and a total absence of debt or swap maturities this year, we are in an ideal position to drive growth on a per-unit basis as market conditions steadily improve. As we always have, we'll keep focusing on what we can control and carefully allocate capital to its best use to deliver the strongest possible returns. I will now invite Tom to review our first quarter financial results in more detail. Tom?