Centerspace (CSR) 2026 Q1 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to the Centerspace's Q1 2026 earnings call. (Operator Instructions)

各位好。感謝各位加入，歡迎參加 Centerspace 2026 年第一季財報電話會議。（接線員指示）

I will now hand the call over to Josh Klaetsch, Director of Investor Relations. Please go ahead.

現在我將把電話交給投資人關係總監 Josh Klaetsch。請開始。

Thank you, good morning, everyone. Centerspace's Form 10-Q for the quarter ended March 31, 2026, was filed with the SEC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure package have been posted to our website at centerspacehomes.com and filed on Form 8-K.

謝謝，各位早安。Centerspace 截至 2026 年 3 月 31 日止季度的 Form 10-Q 已於昨日收盤後向美國證券交易委員會（SEC）提交。此外，我們的財報新聞稿與補充揭露資料包已發布於 centerspacehomes.com，並以 Form 8-K 形式提交。

It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on management's current views and assumptions. These statements are subject to risks and uncertainties discussed in our filing under the section titled Risk Factors and in our other filings with the SEC. We cannot guarantee that any forward-looking statements will materialize and you're cautioned not to place undue reliance on these forward-looking statements. Please refer to our earnings release for reconciliation of any non-GAAP information, which may be discussed on today's call.

需要特別說明的是，今天的發言將包含關於我們業務展望及其他前瞻性陳述，這些陳述係基於管理層目前的觀點與假設。這些陳述受我們申報文件中「風險因素」章節及其他向 SEC 提交文件所討論之風險與不確定性影響。我們無法保證任何前瞻性陳述一定會實現，並提醒各位不要過度依賴這些前瞻性陳述。請參閱我們的財報新聞稿，以取得今日電話會議可能討論之任何非 GAAP 資訊的調節表。

I'll now turn it over to Centerspace's President and CEO, Anne Olson, for the company's prepared remarks.

接下來我將把時間交給 Centerspace 總裁暨執行長 Anne Olson，進行公司預先準備的發言。

Thank you, Josh, and good morning, everyone. I'm here with our SVP of Investments and Capital Markets, Grant Campbell; and our CFO, Bhairav Patel. I'll start by addressing the strategic review, which we initiated in 2025. This process is ongoing and we appreciate the feedback we have received from our stakeholders.

謝謝你，Josh，各位早安。今天與我一同出席的有投資與資本市場資深副總裁 Grant Campbell，以及財務長 Bhairav Patel。我將先談我們於 2025 年啟動的策略檢討。此流程仍在進行中，我們也感謝利害關係人所提供的回饋。

The Board and its advisors continue to make progress and we expect to provide shareholders with a more substantive update on the status of the review process before or in connection with our second-quarter earnings release. There can be no assurance as to the timing or outcome of our process, and no assurance that the review process will result in a transaction or other strategic change or outcome. We do not intend to provide further details in connection with discussion of our first-quarter earnings results today. Thank you for your understanding as we keep our comments focused on our results and our outlook.

董事會及其顧問團隊持續取得進展，我們預期將在第二季財報發布之前或與其同時，向股東提供更具實質內容的檢討流程進度更新。對於流程的時程或結果不作任何保證，也不保證該檢討流程將導致任何交易或其他策略變更或結果。我們不打算在今天討論第一季財報結果時提供更多細節。感謝各位理解，我們將把發言重點放在業績表現與展望上。

Our revenues for Q1 were in line with our expectations, supported by stable demand and continued execution by our leasing teams. First-quarter results reflect the negative impact of recent changes to Colorado Regulations, timing of certain expenses, and costs related to our strategic review. These were anticipated and our expectations for full-year core FFO and its drivers remain substantially unchanged. We are reiterating our previously released earnings guidance, and Bhairav will discuss this momentarily.

我們第一季營收符合預期，主要受穩定需求支撐，並得益於租賃團隊持續有效的執行。第一季結果反映了近期科羅拉多州法規變更的負面影響、部分費用認列時點，以及與策略檢討相關的成本。上述影響皆在預期之內，我們對全年核心 FFO 及其驅動因素的預期仍大致不變。我們重申先前發布的財測指引，Bhairav 稍後將進一步說明。

Operationally, we are starting to see the expected seasonal pickup in leasing. While blended leasing spreads in the quarter were up 40 basis points over prior leases, each month demonstrated improvement, increasing from negative 90 basis points in January to positive 140 basis points in March.

在營運面，我們開始看到預期中的租賃季節性回升。雖然本季綜合租賃價差（blended leasing spreads）較前一份租約上升 40 個基點，但每個月皆呈現改善，從 1 月的負 90 個基點提升至 3 月的正 140 個基點。

We've seen this trend continue into April with preliminary blended spreads of 1.8%. The Q1 blend was composed of a 2.1% decrease in new lease rents combined with a 3.1% increase on renewals, while in April, new lease spreads broke into positive territory and renewal spreads increased to 3.3%.

我們看到此趨勢延續至 4 月，初步綜合價差為 1.8%。第一季的綜合結果由新租租金下滑 2.1% 與續租上升 3.1% 所構成；而在 4 月，新租價差轉為正值，續租價差則提高至 3.3%。

Retention of 54.1% in our same-store portfolio was a 2 percentage point improvement from the same quarter last year. And our resident base remains healthy, with rent-to-income levels at 21.2%, and bad debt within our historical range.

我們同店組合（same-store）續租率為 54.1%，較去年同季提升 2 個百分點。我們的住戶基礎仍然健康，租金占收入比為 21.2%，呆帳水準亦維持在歷史區間內。

Our Midwest markets continue to see rent growth outpacing national averages, and our largest market of Minneapolis saw blended spreads of 1.3% in Q1. Notably, Minneapolis has shown the best acceleration into April, with blended spreads of 3.8% and new lease spreads of 4.3% in the month.

我們的中西部市場租金成長仍持續領先全國平均，而我們最大的市場明尼阿波利斯在第一季的綜合價差為 1.3%。值得注意的是，明尼阿波利斯在 4 月呈現最佳加速，當月綜合價差為 3.8%，新租價差為 4.3%。

In Denver, Q1 blended rates were down 5.1%, and reimbursement revenues are exhibiting the impact of regulatory changes in the market. Concessions are prevalent in the market, and we experienced our highest usage of concessions to date in Q1. That said, we have reason for optimism. Q1 absorption levels were at their highest level since the pandemic rebound in 2021, and retention in our Denver communities was 51.9%, an improvement over Q1 2025. This data, together with the significant drop-off of new construction starts, sets us up for a better leasing profile as the year progresses, with improvement in both concessions and leasing spreads expected as we enter peak leasing season. Expenses in the quarter were higher than our historic trend or 2026 projected run rate. Much of this was related to timing, which Bhairav Patel will elaborate on.

在丹佛，第一季綜合租金水準下滑 5.1%，而補償性收入（reimbursement revenues）也顯示出該市場法規變更的影響。市場中優惠（concessions）相當普遍，我們在第一季的優惠使用率創下迄今最高。儘管如此，我們仍有理由保持樂觀。第一季吸納量（absorption）達到自 2021 年疫情後反彈以來的最高水準，而我們丹佛社區的續租率為 51.9%，較 2025 年第一季有所改善。這些數據，加上新建案開工量明顯下滑，使我們在今年後續期間具備更佳的租賃態勢；隨著進入租賃旺季，預期優惠與租賃價差皆將改善。本季費用高於我們的歷史趨勢或 2026 年預估的常態化水準（run rate）。其中多數與認列時點有關，Bhairav Patel 將進一步說明。

Our team excels in expense management, as evidenced by our same-store expense growth of only 1.6% over 2024 and 2025. We expect that discipline to show again in 2026 as the impacts of one-time expenses normalize. I would be remiss not to recognize our team. Their commitment and execution sets us apart, and we're proud that their efforts have been recognized through several awards, most recently being named a USA TODAY Top Workplaces. I'm very grateful for our amazing team members.

我們團隊在費用管理方面表現出色，從我們同店費用在 2024 與 2025 年僅成長 1.6% 即可見一斑。我們預期在 2026 年，隨著一次性費用影響回歸常態，這份紀律將再次展現。我也必須表揚我們的團隊。他們的投入與執行力讓我們脫穎而出，我們也很自豪他們的努力獲得多項獎項肯定，最近更被評為《USA TODAY》Top Workplaces。我非常感謝我們優秀的團隊成員。

With that, I'll turn it over to Grant.

接下來我把時間交給 Grant。

Thanks, Anne. Good morning, everyone. Nationwide transaction activity continues showing signs of improvement, including a 13% total volume increase in 2025 compared to 2024. At the same time, investors are becoming increasingly selective with their investment decisions. There is a wide variation across individual markets as it pertains to investor conviction and actions. Within our geographic footprint, this dynamic exists. In Minneapolis, 2025 was a record year for transactions at $2.5 billion in total volume.

謝謝你，Anne。各位早安。全國交易活動持續顯示改善跡象，包括 2025 年相較 2024 年總交易量增加 13%。同時，投資人對投資決策也愈發挑剔。就投資人信心與行動而言，各個市場之間存在很大的差異。在我們的地理布局中，也同樣存在這種動態。在明尼阿波利斯，2025 年交易總量達 25 億美元，創下歷史新高。

This is driven by supply peaking in 2023 and at the peak, new deliveries representing only 6% of then existing stock, comparing favorably to the profile of high supply markets. Coupling this with stable and persistent renter demand, investors have been drawn to the market, and we expect this to continue throughout 2026, in part due to next 12 month deliveries representing 1.6% of existing inventory and the full construction pipeline at 2.1% of inventory. In our other Midwest markets, we continue seeing strong interest from Private Capital Investors. These markets are anchored by healthcare, education, and government and have muted supply profiles, including next 12 month deliveries ranging from 0% in our North Dakota and Rochester, Minnesota markets to 2.4% of existing inventory in Omaha.

這主要是因為供給在 2023 年達到高峰，而在高峰時，新交付量僅占當時既有存量的 6%，相較於高供給市場的供給結構更具優勢。再加上穩定且持續的租屋需求，投資人因此被吸引至該市場；我們預期此趨勢將延續至 2026 年，部分原因在於未來 12 個月的交付量僅占既有庫存的 1.6%，而整體在建管線（construction pipeline）占庫存的 2.1%。在我們其他中西部市場，我們仍持續看到來自私募資本投資人（Private Capital Investors）的強勁興趣。這些市場以醫療、教育與政府為支柱，供給面相對溫和，包括未來 12 個月交付量從北達科他州與明尼蘇達州羅徹斯特市場的 0%，到奧馬哈占既有庫存的 2.4% 不等。

While the labor market has slowed nationally, we are seeing healthier relative performance in these locations, including in Grand Forks, North Dakota, where the US Space Force is expanding its presence and a new $450 million food processing facility is underway. Along with Rochester, Minnesota, which saw strong job growth in 2025, driven by healthcare and education. Shifting to Denver, transaction volume was down 41% in 2025 compared to 2024, and this has carried into 2026 thus far. The market continues working through the influx of deliveries from the past 24 months, flat job growth in 2025, and the recent legislative changes affecting property level other income. This has generally put Denver's transaction market in a wait and see environment.

雖然全國勞動市場已放緩，但我們在這些地點看到相對更健康的表現，包括北達科他州大福克斯（Grand Forks），美國太空軍正在擴大其駐點，同時一座新的4.5億美元食品加工設施也在興建中。以及明尼蘇達州羅徹斯特（Rochester），其在2025年受醫療保健與教育帶動，工作成長強勁。轉到丹佛，2025年的交易量較2024年下降41%，且截至目前這一趨勢已延續至2026年。市場仍在消化過去24個月大量交付入市的供給、2025年就業成長持平，以及近期影響物業層級其他收入的立法變更。整體而言，這使丹佛的交易市場普遍處於觀望狀態。

Premium assets and locations are still commanding strong pricing, including a few recent trades at sub 5% in place cap rates. The divide between premium profile and the rest of the market has widened. We believe this theme will continue until growth indicators translate into hard data, providing investors more conviction in underwriting strengthening fundamentals. Strong Q1 absorption numbers are one building block. Taken together, we think this environment reinforces our historical focus on disciplined capital allocation. We expect household formation in our portfolio to outpace national averages by 50 basis points through the end of next year and employment growth to similarly outpace the US. We believe this positioning will allow us to navigate the current environment while creating value over time.

優質資產與優質地段仍能支撐強勁定價，包括近期少數交易的就地資本化率（in-place cap rates）低於5%。優質標的與市場其餘部分之間的差距已擴大。我們認為，在成長指標轉化為硬數據之前，這一主題將持續，從而讓投資人對於在承銷中納入基本面走強更具信心。第一季強勁的吸納（absorption）數據是其中一個基石。綜合來看，我們認為這樣的環境強化了我們一貫對嚴謹資本配置的歷史性聚焦。我們預期，至明年年底，我們投資組合的家庭形成（household formation）將以50個基點超越全國平均，就業成長也將同樣超越美國整體。我們相信，這樣的布局將使我們能在當前環境中穩健前行，並隨時間推移創造價值。

I'll now turn it over to Bhairav Patel to discuss our financial results and guidance.

接下來我把時間交給Bhairav Patel，請他說明我們的財務結果與指引。

Thanks, Grant, and hello, everyone. Last night we reported first quarter core FFO of $1.12 per diluted share, driven by a 1.1% year-over-year decrease in Q1 same-store NOI. Revenues from same-store communities were flat compared to the same quarter in 2025, with a 1.7% increase to average monthly rental rate in the portfolio offset by a 40 basis point decrease to occupancy and the impact of lower RUBS revenue in our Colorado communities. On the same-store expense side, Q1 numbers were up 1.7% year over year, with controllable expenses up 3.5% and non-controllables down 1.1%. Our G&A expenses increased by $1.3 million over the same quarter last year, with strategic review costs as the main driver of that increase.

謝謝你，Grant，大家好。昨晚我們公布第一季核心FFO為每股稀釋後1.12美元，主要受第一季同店NOI年減1.1%所驅動。同店社區的營收與2025年同季持平；投資組合平均月租金上升1.7%，但被入住率下降40個基點以及我們科羅拉多社區RUBS收入較低的影響所抵銷。在同店費用端，第一季數據年增1.7%，其中可控費用上升3.5%，不可控費用下降1.1%。我們的G&A費用較去年同季增加130萬美元，該增幅主要由策略性檢視（strategic review）成本所帶動。

Turning to full-year 2026 expectations, our guidance is consistent with what we outlined in February, with core FFO at $4.93, same-store NOI growth of 75 basis points, same-store revenue growth of 88 basis points, and same-store expense growth of 1.5%, each at the midpoint of their guided range. Casualty recoveries in Q1 led us to increase our neighborhood FFO expectations for the year by $0.03 at the midpoint to $4.78 per share. Revenue growth assumes blended gross leasing spreads of approximately 2%, with occupancy in the mid 95% range and retention of about 52%. We continue to expect blended spreads that will again be highest in our Midwest communities. That strength will bolster our Denver portfolio, where we expect spreads to be down for the year, though improving as the year progresses.

談到2026年全年展望，我們的指引與2月所概述的一致：核心FFO為4.93美元，同店NOI成長75個基點、同店營收成長88個基點、同店費用成長1.5%，以上皆為各自指引區間的中點。第一季的災損理賠回收（casualty recoveries）使我們將全年Neighborhood FFO的預期在中點上調0.03美元至每股4.78美元。營收成長假設綜合毛租賃價差（blended gross leasing spreads）約為2%，入住率在95%中段區間，續租率約52%。我們仍預期綜合價差將再次以我們中西部社區最高。該強勢表現將支撐我們的丹佛投資組合；我們預期丹佛全年價差將下滑，但會隨著年度推進而改善。

As we have previously stated, regulatory changes are expected to temper revenue growth in our Colorado Portfolio, with RUBS expected to be down nearly $1 million, which was already incorporated into our initial guidance. As Anne alluded to earlier, expenses in the first quarter were slightly higher than our expectations. However, a part of that increase was driven by timing differences, especially on the non-controllable side. We reported approximately $400,000 in real estate tax true-ups during the quarter. True-ups are not uncommon during the first quarter, and we expect these to be offset when we resolve open appeals in the second half of this year. Our non-reimbursable losses during the quarter were also slightly higher than anticipated. This line item tends to be volatile, and our first quarter experience has not altered our expectations for the full year.

如我們先前所述，監管變更預期將抑制我們科羅拉多投資組合的營收成長，RUBS預計將減少近100萬美元，而這已納入我們最初的指引。如Anne先前提到的，第一季費用略高於我們的預期。不過，其中一部分增幅是由時點差異所致，特別是在不可控費用端。我們在本季認列約40萬美元的不動產稅調整（true-ups）。第一季出現調整並不罕見，我們預期在今年下半年解決未結稅務申訴（appeals）後，這些將被抵銷。本季我們的不可報銷損失（non-reimbursable losses）也略高於預期。此項目通常波動較大，而第一季的情況並未改變我們對全年展望的預期。

Controllable expenses were impacted by a low team member open position count and the timing of our R&M projects. We expect offsets to both will favorably impact the cost of these for the remainder of the year. Lastly, while G&A during the quarter was higher than the projected run rate for the rest of the year, we now expect full-year G&A to be lower than our initial projection. As a result, we still expect to deliver financial performance within the initial guidance ranges we discussed at the beginning of the year. To further aid in modeling, I wanted to highlight our expectations for certain line items and related timing. Costs related to our strategic review are expected to be $1 million-$1.5 million for the year, with those costs expected to occur primarily in the first half of the year.

可控費用受到團隊成員職缺數偏低以及我們維修與保養（R&M）專案時點的影響。我們預期這兩者的抵銷效應將在今年剩餘期間有利地影響相關成本。最後，雖然本季G&A高於今年其餘期間的預估常態水準（run rate），但我們現在預期全年G&A將低於最初預估。因此，我們仍預期財務表現將落在年初所討論的初始指引區間內。為進一步協助建模，我想強調我們對某些科目及其相關時點的預期。與策略性檢視相關的成本預期全年為100萬至150萬美元，且主要發生在上半年。

This expense appears in both our G&A costs and as an add back from FFO to core FFO. Amortization of assumed debt is expected to be $1.3 million for the year, with $490,000 expected in Q2 for quarterly amortization decreases to $215,000 per quarter in Q3 and Q4. Our guidance does not include any acquisitions or dispositions. Turning to our balance sheet, Q1 annualized debt to EBITDA was impacted by the higher G&A and taxes in the quarter, leading it to be atypically high. This is not indicative of any meaningful change to our leverage profile, and we expect this number to return to our historical mid 7x range as the year progresses and expenses normalize.

此費用同時列於我們的G&A成本中，並在從FFO調整至核心FFO時作為加回項（add back）。承接債務的攤銷（amortization of assumed debt）預期全年為130萬美元，其中第二季預計49萬美元；之後季度攤銷在第三季與第四季將降至每季21.5萬美元。我們的指引未包含任何收購或處分。談到資產負債表，第一季年化債務對EBITDA比率受到本季較高的G&A與稅負影響，因而異常偏高。這並不代表我們槓桿概況有任何重大變化；我們預期隨著年度推進、費用回歸常態，該數值將回到我們歷史上的約7倍中段區間。

Our debt schedule features both a compelling rate and long tenure, with a weighted average rate of 3.6% and weighted average maturity of 6.7 years, while liquidity remains strong with $267 million of cash and line of credit availability compared to $98 million of debt maturing through 2027. To conclude, this quarter demonstrated the stability and consistency of our portfolio, with our results demonstrating our commitments to both operational excellence and financial discipline and positioning us well for the rest of 2026. Operator, please open the line for questions.

我們的債務到期結構同時具備具吸引力的利率與較長年期，加權平均利率為3.6%，加權平均到期年限為6.7年；同時流動性仍然強勁，現金與循環信用額度可用額合計2.67億美元，相較之下至2027年到期的債務為9,800萬美元。總結而言，本季展現了我們投資組合的穩定性與一致性；我們的結果體現了對營運卓越與財務紀律的承諾，並使我們在2026年剩餘期間處於有利位置。接線員，請開放提問。

(Operator Instructions) Brad Heffern, RBC.

(接線員指示) Brad Heffern，RBC。

Yeah. Hey, morning, everyone. On Minneapolis, it sounds like you're seeing a strong inflection in spreads there. Do you view that market as being sort of back to normal at this point after we've passed all the supply? Do you expect to see it overshoot to the upside to some extent?

是的。各位早安。關於明尼阿波利斯，聽起來你們看到那裡的利差出現強勁的拐點。在我們消化完所有供給之後，你們是否認為該市場此時已算是回到正常狀態？你們是否預期它會在某種程度上向上超調？

Yeah, good morning, Brad, thanks for listening today. I think you're exactly right how we feel about it. We are certainly past the inflection point where the demand has stayed steady and the supply has been significantly absorbed, and the new supply pipeline, as Grant discussed, is tapering to just over 2%. We're seeing really good rent increases there, and we think that that will continue. We have no indicators that demand is softening here in Minneapolis and the economy, the regional economy here is healthy. We do expect some outperformance from Minneapolis this year, particularly relative to our other markets.

是的，早安，Brad，謝謝你今天收聽。我想你說得完全符合我們的看法。我們確實已經過了那個拐點：需求維持穩定，而供給已被大幅吸收；同時如 Grant 所提到的，新供給管線正在收斂至略高於 2%。我們看到那裡的租金上漲非常不錯，而且我們認為這將會持續。我們沒有任何跡象顯示明尼阿波利斯的需求正在轉弱，而且當地經濟、區域經濟也很健康。我們確實預期明尼阿波利斯今年會有一些超額表現，尤其是相對於我們其他市場。

Okay, got it. Bhairav, on the guidance 1Q is at the bottom end of the revenue growth guidance range. The expenses in 1Q were close to the top end of the range. Obviously, you didn't change the guidance, but I'm curious if you can just walk through the path to both of those getting to their midpoints or do you expect that NOI maybe won't get to the midpoint just based on where we are so far?

好的，了解。Bhairav，關於指引，第一季在營收成長指引區間的下緣。第一季的費用接近區間的上緣。顯然你們沒有調整指引，但我想請你說明一下，兩者要如何走到各自的中位數？或者就目前進度來看，你們是否預期 NOI 可能無法達到中位數？

Morning, Brad. Yeah, let's go through the components. Revenue was still in line with our expectations. It was flat for the quarter, we expected it. The increase in scheduled rent was offset by the loss of RUBS revenue in Colorado, and there was amortization and concessions that started in the second half of last year. Overall, revenue came in line with expectations, and April is shaping up also in line with expectations. We do expect that remains on track.

早安，Brad。好的，我們來拆解各個組成。營收仍符合我們的預期。本季持平，這也是我們所預期的。已排定租金（scheduled rent）的增加，被科羅拉多 RUBS 收入的流失所抵銷，另外還有去年下半年開始的攤銷與讓利（concessions）。整體而言，營收符合預期，而 4 月的表現也正朝著符合預期的方向發展。我們確實預期這會持續按軌道進行。

On controllables, R&M was slightly higher in the first quarter. Some of that was timing, which will correct itself. The remainder we expect to offset with savings elsewhere. We are fully staffed now, so we expect to be able to drive efficiencies as we enter leasing season by better managing overtime spend and third-party vendors.

在可控項目方面，第一季的維修與保養（R&M）略高。其中一部分是時點因素，之後會自行修正。其餘部分我們預期會透過其他地方的節省來抵銷。我們現在已經滿編，因此在進入租賃旺季時，我們預期能透過更好地管理加班支出與第三方供應商來提升效率。

We do expect that we'll kind of remain on track on controllables as well. With respect to non-controllables, there were some tax true-ups in the first quarter. It's not unusual for us to see tax true-ups in the first quarter. We do expect some appeal savings to materialize in the second half of the year, so that should offset it. As I said in my prepared remarks, there were some non-reimbursable losses which again tend to be volatile. We saw higher losses in the first quarter, which is not really indicative of the run rate going forward, so that should normalize as well.

我們也預期可控項目整體仍會大致維持在軌道上。至於不可控項目，第一季有一些稅務追溯調整（tax true-ups）。我們在第一季看到稅務追溯調整並不罕見。我們確實預期下半年會有一些申訴（appeal）節省開始反映，因此應可抵銷。如我在事先準備的發言中提到，還有一些不可報銷的損失（non-reimbursable losses），這類項目本來就較為波動。第一季我們看到較高的損失，這其實不太代表未來的常態水準，因此也應會回歸正常。

Lastly, there's G&A. That was also higher than the run rate. It was driven by some payroll tax accruals that are typically higher in the first quarter when we grant the equity awards. That should also normalize as we go through the rest of the year. We actually did identify some additional savings. Overall, when you kind of combine all of these components, we expect to remain in line with the midpoint of our NOI as well as core FFO.

最後是 G&A（一般及行政費用）。這也高於常態水準。主要是因為一些薪資稅提列（payroll tax accruals），通常在第一季、我們發放股權獎勵時會比較高。隨著年度其餘時間推進，這也應會正常化。我們其實也找出了一些額外的節省。整體而言，把這些組成項目合在一起看，我們預期 NOI 以及核心 FFO 都會維持在中位數附近、符合預期。

Okay. Thank you.

好的。謝謝。

Ami Probandt, UBS.

Ami Probandt，UBS。

Hi. Thank you. Just to dive in a little bit more on the markets, the other Mountain West Markets are a relatively small part of the portfolio, but growth in the quarter was pretty soft. I was wondering if you could talk through what's going on there.

嗨。謝謝。我想再更深入一點談市場面：其他山區西部市場在投資組合中占比相對小，但本季成長相當疲弱。想請你談談那邊發生了什麼事。

Yeah, sure. Good morning, Amy. The other Mountain West consists of Rapid City and Billings. Those markets, if you recall, are acting a little bit more like a Denver. They had enormous rent growth in 2021, 2022 into 2023, but then they did get some supply. Being smaller markets, they have been impacted a little bit by supply. That is tapering off, and as Grant noted, we see very little supply coming there. That market really has had some equalization going on there as they work through that supply and then also a little bit softer job picture there. Immediately post-COVID, they had a pretty big influx of people working remotely, particularly in places like Rapid City. We've seen that pull back a little bit.

好的，當然。早安，Amy。其他山區西部包含 Rapid City 與 Billings。如果你還記得，這些市場的表現有點更像丹佛。它們在 2021、2022 到 2023 年期間租金成長非常驚人，但之後確實出現了一些供給。由於是較小的市場，因此受到供給影響會比較明顯一些。目前這正在收斂，而且如 Grant 所指出，我們看到那邊未來新增供給非常少。該市場在消化供給的過程中確實出現了一些「均衡化」的調整，同時當地就業景氣也稍微偏弱。在 COVID 之後的初期，遠端工作人口大量流入，特別是在 Rapid City 這類地方。我們看到這股趨勢稍微回落了一些。

The market is still strong, but we're not seeing the growth that we had been there. We've had a little bit of a pullback in those markets.

市場仍然強勁，但我們沒有看到先前那樣的成長。這些市場出現了一點回檔。

Got it. Thanks. That makes sense. Then just on retention, this has been really strong, remains ahead of historical. I was just wondering if you think that retention might come down at all and to what extent it might come down as you change over to pushing a little bit more on rate as we move into the peak leasing season.

了解。謝謝。這很合理。另外關於續租率（retention），一直都非常強，仍高於歷史水準。我想請問你是否認為續租率可能會下降一些？以及當你們在租賃旺季高峰期更著力於推升租金（rate）時，它可能會下降到什麼程度？

Yeah, this is a great question. I think the the market has changed. The last couple of years across the industry, we've really seen higher retention. You're hearing that from all the multifamily peers. You're hearing that on the private side. Whether or not there are some fundamental shifts there, I think, people are starting to lean into that, right? The renters are staying renters longer. The average age of a renter is increasing. I think there's a higher percentage of renters in the market, which is helping retention. Now, as we look into this year, the one thing that we're really looking at is with a lot of absorption coming a lot of absorption happening, there's actually gonna be fewer choices for people to move to.

是的，這是個很好的問題。我認為市場已經改變了。過去幾年在整個產業，我們確實看到更高的續租率。你也從所有多戶住宅同業那裡聽到同樣的情況。在私募市場那邊你也會聽到。至於是否存在一些基本面的結構性轉變，我想大家開始傾向接受這點，對吧？租客維持租客身分的時間更長。租客的平均年齡正在上升。我認為市場中的租客占比更高，這有助於續租率。而今年我們真正關注的一點是：隨著大量吸收正在發生、供給被消化，其實人們可搬遷的選擇會變少。

One of the things we noted is while retention was really strong in Q1, it actually jumped up pretty significantly in April. I guess my early leaning is that this is a little bit of a fundamental shift in the industry away from that 50% general retention rate into something a little bit higher.

我們注意到的一點是，雖然第一季的續租表現非常強勁，但在四月其實又相當明顯地跳升。我目前初步的看法是，這可能代表產業正從約 50% 的一般續租率，出現一些根本性的轉變，往更高的水準移動。

Great. Thank you very much.

很好。非常感謝。

(Operator Instructions) Jeffrey Carr, Cantor Fitzgerald.

(接線員指示) Jeffrey Carr，Cantor Fitzgerald。

Hey, good morning. Just wanted to ask about with the review ongoing and no acquisitions or dispositions and guidance, how are you thinking about capital allocation priorities for the rest of the year, and specifically maybe around the revolver balance and value add spend? How much does the review kind of influence those decisions, if at all? Thanks.

嗨，早安。想請教一下，在目前審查仍在進行、且沒有收購或處分、並維持指引的情況下，你們如何看待今年剩餘時間的資本配置優先順序？特別是循環信貸（revolver）餘額以及增值（value add）支出方面。這項審查在多大程度上會影響這些決策（如果有的話）？謝謝。

Yeah, this is a great question. I think capital allocation is job number one of an executive team, particularly when you have hard assets. We, while we maintained our guidance on value add for the year, and we do think that that's an important part of our program here and our operating platform. Really, most of the value add that we're spending are things that were started or identified last year. As we think about capital allocation priorities going forward, we're very focused on managing the line of credit debt and keeping our balance sheets strong and flexible.

是的，這是個很好的問題。我認為資本配置是管理團隊的首要任務，尤其當你擁有實體資產時更是如此。我們雖然維持今年增值（value add）方面的指引，也確實認為這是我們計畫與營運平台的重要一環。但實際上，我們目前大多數的增值支出，都是去年就已啟動或已辨識的項目。展望未來的資本配置優先順序，我們非常專注於管理信用額度（line of credit）負債，並維持資產負債表的強健與彈性。

Great. Appreciate the color. Thank you.

很好。感謝補充說明。謝謝。

Mason Guell, Baird.

Mason Guell，Baird。

Hey, good morning, everyone. Has there been any change to the outlook for any of your markets this year? Are any doing better or maybe worse than expected?

嗨，各位早安。今年你們對任何市場的展望有沒有改變？是否有些市場表現比預期更好或更差？

Well, as Mason, good morning. As Bhairav said we really expect revenue is coming in line with expectations, that's unchanged for the year. I think maybe the components are moving a little bit, we'd like to see Denver picking up a little bit faster. They had awesome absorption in Q1, as we discussed in the prepared remarks. If that continues we're gonna be right in line there. Minneapolis is a little bit better than we expected these are all very slight offsets. Overall, I think revenue is coming in right where we thought, we expect that to continue for the year.

Mason，早安。如 Bhairav 所說，我們預期營收會符合預期，這點今年並沒有改變。我想可能是組成項目有些微變動；我們希望丹佛回升的速度能再快一些。如同我們在事先準備的講稿中提到的，丹佛在第一季的去化（absorption）非常出色。如果這樣的趨勢持續，我們在那邊就會完全符合預期。明尼阿波利斯則比我們預期稍微好一些，這些都只是非常小幅的互相抵銷。整體而言，我認為營收正如我們所預期地進來，我們也預期今年會持續如此。

Great, could you provide some color on the real estate investment impairments line item on your income statement?

很好，你能否就損益表上的不動產投資減損（impairments）項目提供一些補充說明？

Morning. Yes, we can go through the impairment. Overall, from a GAAP standpoint, you typically book impairment when you're on real assets, when your cash flows are gonna be less than your book value. From real assets, you don't typically tend to see it because they have long holding periods. You usually see impairments when we have assets that are held for sale.

早安。可以，我們可以說明減損部分。整體而言，從 GAAP 的角度，通常在不動產等實體資產上，當你預期未來現金流將低於帳面價值時，就會認列減損。對於實體資產來說，因為持有期間通常很長，一般不太常見減損。你通常會在資產被列為待售（held for sale）時看到減損。

With the ongoing strategic review, the considerations change a little bit, and we have to kind of tweak the the holding period for certain assets, which resulted in the impairment that we booked in the first quarter. It was truly driven by a change in the potential holding period in light of all the other activity that's being reviewed at the strategic level. That's really what drove the impairment.

在策略性審查持續進行的情況下，相關考量會有些不同，我們必須對某些資產的持有期間做一些調整，這也導致我們在第一季認列了減損。這確實是因應策略層面正在檢視的其他活動，而對潛在持有期間的變動所驅動。這就是造成減損的主要原因。

It was on one asset and was driven by property specific factors.

這是針對一項資產，並且是由該物業的特定因素所驅動。

Thanks for the time.

謝謝撥冗。

Michael Gorman, BTIG.

Michael Gorman，BTIG。

Yeah, thanks. Good morning. Maybe just a quick one from me on a more strategic level. As you're thinking about the portfolio and you're thinking about the business. Obviously, Denver, I think, has been a challenge, and that's not unique to you all. There was an article in The Wall Street Journal over the weekend talking about the regulatory environment for business in general in the State of Colorado, and that some increasing concerns about the regulatory burden among the tech ecosystem. I'm just wondering, have you started to see any of those concerns? Have you started to think about those concerns and what that means for the job market in those kind of core metro areas in Colorado, or is this just a little bit too far out on the horizon?

是的，謝謝。早安。我這邊可能有個較策略層面的簡短問題。當你們在思考投資組合、也在思考整體業務時，很明顯地，丹佛一直是個挑戰，我想這也不是你們獨有的情況。週末《華爾街日報》有篇文章談到科羅拉多州整體商業的監管環境，以及科技生態圈對監管負擔增加的疑慮正在升高。我想請問，你們是否已開始看到這些疑慮？你們是否已開始思考這些疑慮對科羅拉多州那些核心都會區就業市場的意涵？還是說這仍然有點太早、離現在太遠？

Good morning, Michael. This isn't too far out on the horizon, and it is something that we're thinking about. As we consider you may recall when we before we bought in Salt Lake City, one of the things that we really look at with respect to markets is the business climate, right? The friendliness, the tax regime, the regulatory environment. In Colorado, you can even see, and we discussed in our prepared remarks, you can start seeing the results of some of the regulatory actions that they have taken with respect to real estate on the RUBS, the collection, our ability to get reimbursement for RUBS and utility costs. We're already starting to see that there.

早安，Michael。這並不算太遙遠，而且確實是我們正在思考的事情。你可能記得，在我們收購鹽湖城之前，我們在評估市場時非常重視的一點就是商業環境，對吧？包括友善程度、稅制、監管環境。在科羅拉多州，你甚至可以看到——而且我們在事先準備的講稿中也提到——他們針對不動產所採取的一些監管措施已開始產生結果，例如 RUBS、收取方式，以及我們取得 RUBS 與公用事業成本補償的能力。我們已經開始在那裡看到影響。

I do think that some of the other regulatory actions that they're considering or considering taking are impacting their job growth. As Grant noted, it's been flat there after a few years of really, really strong growth. Is this part of the natural kind of maturing of Denver, which went from a million people to close to 4 million people in a relatively short span of time?

我確實認為，他們正在考慮或可能採取的其他監管措施，正在影響其就業成長。如 Grant 所提到的，在經歷了幾年非常、非常強勁的成長後，那裡的成長已趨於持平。這是否是丹佛自然走向成熟的一部分——在相對短的時間內，人口從 100 萬增加到接近 400 萬？

A lot of jobs came there. Did the infrastructure not keep up? Do they feel pressure to put these regulations in place? Will that abate over time? I think that remains to be seen. We're really happy with the portfolio we have there. We're very happy with the basis we have in it, having started to acquire that portfolio back in 2017.

很多工作機會都移入那裡。基礎建設是否沒有跟上？他們是否因此感受到壓力而必須制定這些法規？這種情況是否會隨時間緩解？我認為這仍有待觀察。我們對目前在那裡持有的投資組合非常滿意。我們也很滿意我們的取得成本基礎（basis），因為我們從 2017 年就開始收購那個投資組合。

We're optimistic because it is still a place that has a lot of cultural gravitas. People are still wanting to live there for access to the outdoor amenities and things that other cities can't offer. On a relative basis to places like California, it is still very affordable. Definitely something that we're watching, something we're already starting to feel the impacts of and really keeping a close eye on.

我們保持樂觀，因為那仍是一個具有很強文化吸引力的地方。人們仍然想住在那裡，以享受戶外休閒資源等其他城市無法提供的條件。相較於加州等地，那裡在相對基準下仍然非常可負擔。這絕對是我們正在關注的事情；我們已開始感受到其影響，並且會持續密切留意。

That's really helpful, caller. Thanks. Maybe just a follow-up. I just wanted to make sure I had it clear. It sounds like, to your point, job growth is a little bit slower in Denver, but it sounds like absorption is running at pretty high levels. I'm just wondering kind of what could be driving that mismatch and how durable that absorption level do you think can be, with the current level of job growth?

這真的很有幫助，來電者。謝謝。也許再追問一下。我只是想確認我理解正確。聽起來，如你所說，丹佛的就業成長稍微慢一些，但吸納量似乎仍維持在相當高的水準。我想了解是什麼因素可能造成這種落差，以及在目前的就業成長水準下，你認為這樣的吸納水準能維持多久？

Yeah. Good morning, Michael Gorman. Correct. Q1 absorption numbers were very strong, peak data, looking back to the pandemic period. We continue to see strong inflows of resident and renter demand in the market. I think a big driver there is the high cost of homeownership in that market. Although job growth has been flat in 2025, as we talked about we do continue to still see folks from outstate relocating to the market, maybe not at the same clip that they were from 2021 to 2023. We actually looked within our portfolio, 2021 to 2023. About a third of our applicants within our same-store portfolio were from out of state. In 2024 and 2025, that was 25%.

是的。早安，Michael Gorman。沒錯。第一季的吸納數據非常強勁，是高峰數據，回顧到疫情期間的水準。我們持續看到該市場的住戶與租屋需求強勁流入。我認為其中一個主要驅動因素是該市場的購屋成本非常高。雖然2025年的就業成長持平，但如我們所談到的，我們仍持續看到外州人士搬遷到該市場，只是可能不像2021到2023年那樣快速。我們其實在我們的投資組合內、針對2021到2023年做了分析。在我們同店投資組合的申請者中，大約三分之一來自外州。而在2024與2025年，這個比例是25%。

A reduction but still a meaningful inflow of folks coming from out of state, and it is very expensive to own a home in that market.

比例有所下降，但外州人口的流入仍然相當可觀，而且在那個市場擁有自住房的成本非常高。

Great. Thanks, Grant. Thanks, everyone, for the time.

很好。謝謝你，Grant。也謝謝各位撥冗。

Ami Probandt, UBS.

UBS 的 Ami Probandt。

Hi. Thanks for the additional question. Maybe a follow-up to Michael's question that was just asked. There's maybe some bias for some coastal elites, coastal people about what your Midwest markets might look like. I'm just kind of curious, what's the hiring outlook for recent college grads across your, across your market? Do college grads, are they attracted to these markets, or do they tend to go to some of the bigger Sunbelt markets or coastal markets and then move into the Midwest as they get a little bit older and wanna start a family?

嗨。謝謝讓我再問一題。也許延續剛剛 Michael 的問題。可能有些沿海菁英、沿海人士對你們中西部市場的樣貌會有一些偏見。我有點好奇，在你們各個市場中，近期大學畢業生的招募前景如何？大學畢業生會被這些市場吸引嗎？還是他們通常會先去一些更大的陽光帶市場或沿海市場，之後年紀稍長、想成家時才搬到中西部？

Yeah. Ami , this is a good question. There, as you probably know, there has been some recent publication highlighting where the hot markets for new college grads are. Very few of them are in the Midwest. We still do see really strong companies in our markets and across the Midwest. Minneapolis, we have Target, three huge healthcare in UnitedHealthcare and all of its subsidiaries. Cargill, which is one of the largest private companies in the world. Then on the North Dakota side Grant mentioned we're starting to see some growth there. Grant, maybe you can just comment a little bit on what we're seeing in some of those markets with respect to job growth that would attract some of those new college grads.

是的。Ami，這是個好問題。如你可能知道，最近有一些報導在強調哪些是新鮮人最熱門的市場。其中很少是在中西部。不過我們仍在我們的市場以及整個中西部看到非常強的企業。以明尼阿波利斯為例，我們有 Target，還有三家大型醫療相關企業：UnitedHealthcare 及其所有子公司。還有 Cargill，它是全球最大的私人公司之一。另外在北達科他州方面，Grant 提到我們開始看到一些成長。Grant，也許你可以稍微談談，我們在那些市場就業成長方面看到什麼，會吸引一些新鮮人？

I think to Anne's comments on Minneapolis, 17 Fortune 500 companies, Cargill, largest private company that there is. We see a lot of folks that, maybe Chicago used to be the place if they were Midwest-centric. It was Chicago or were going coastal. We see more and more of those folks coming to the Twin Cities. A strong underlying higher education system in the Twin Cities also serves as a feeder for a lot of those organizations and companies in our backyard. In the case of our other Midwest markets that you alluded to Rochester, the Mayo Clinic is undertaking a very significant expansion phase that is drawing a lot of folks. That market driven by healthcare and education, we're seeing it play out on the ground.

呼應 Anne 對明尼阿波利斯的評論，那裡有17家《財富》500強公司，Cargill 也是現存最大的私人公司。我們看到很多人，過去如果以中西部為主，他們可能會選擇芝加哥。不是去芝加哥，就是去沿海。但我們看到越來越多這些人來到雙子城。雙子城強大的高等教育體系，也為我們周邊許多組織與公司提供了大量人才來源。至於你提到的其他中西部市場，例如羅徹斯特，梅約診所正進行非常重大的擴建階段，吸引了很多人。該市場由醫療與教育驅動，我們在第一線確實看到這樣的趨勢正在發生。

In our prepared remarks, we alluded to North Dakota, where we're seeing some pretty significant investment, both from folks in state as well as, other folks, in this case a European company desiring to put their first US plant in that market. I think these things, although maybe they don't register at the same level as some of the coastal, updates that we hear about the wheel is turning in these markets.

在我們的事先準備發言中，我們也提到北達科他州，我們看到相當顯著的投資，既有州內人士，也有其他投資者；在這個案例中，是一家歐洲公司希望在該市場設立其第一座美國工廠。我認為這些事情，雖然可能不像我們聽到的某些沿海地區動態那樣引人注目，但這些市場的齒輪確實正在轉動。

Ami, just one more thought on that is when I look at recent data and recent news articles about it, There is a big highlight there, which is the new college grads aren't just looking for coastal markets and jobs. They're also balancing that with overall affordability, and that's where the Midwest can be a real draw. Over the past few years, we've seen markets like not just Minneapolis, but Milwaukee, Columbus, Kansas City really get an outside share of those grads given the affordability of living there.

Ami，另外補充一點：當我看近期數據與新聞報導時，有一個重點被大幅凸顯，也就是新鮮人不只是尋找沿海市場與工作。他們也會把整體可負擔性納入權衡，而這正是中西部能夠強力吸引人的地方。過去幾年，我們看到不只是明尼阿波利斯，像密爾瓦基、哥倫布、堪薩斯城等市場，也因為生活成本較可負擔而吸引到超出其占比的新鮮人。

Makes sense. Thank you.

有道理。謝謝。

There are no further questions at this time.

目前沒有其他問題。

Great. Thank you all for joining us today. We look forward to meeting with many of you at the upcoming BMO and Nareit conferences, and we wish you all a great day.

很好。感謝各位今天加入我們。我們期待在即將到來的 BMO 與 Nareit 會議上與各位中的許多人見面，也祝各位有美好的一天。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。