Ladies and gentlemen, thank you for standing by and welcome to the Independence Realty Trust first quarter 2025 earnings conference call. All lines have been placed on mute to preventing background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during that time, press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star followed by the number one. As a reminder, today's call is being recorded. I will now hand today's call over to Stephanie Kruse and Kelly. Please go ahead. Good morning, and thank you for joining

us to review Independence Realty Trust's first quarter 2025 financial results. On the call with me today are Scott Schroeder, Chief Executive Officer, Jim Sebra, President and CFO, and Janice Richards, Executive Vice President of Operations. Today's call is being webcast in the Investors section of our website, irtliving.com, and a replay will be available via webcast and telephonically beginning at approximately 12 noon today, Eastern Time. Before I turn to call over to Scott, I'd like to remind everyone that there may be forward-looking statements made on this call. These forward-looking statements reflect IRT's current views with respect to future events and financial performance. Actual results could differ substantially and materially from what IRT has projected. Such statements are made in good faith pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to IRT's press release, supplemental information, and filings with the SEC for factors that could affect the accuracy of our expectations or cause our future results to differ materially from those expectations. Participants may discuss non-GAAP financial measures during this call. A copy of IRT's earnings press release and supplemental information containing financial information, other statistical information, and reconciliations of non-GAAP financial measures to the most direct comparable GAAP financial measures is attached to IRT's current report on the Form 8K available in the SEC filings section of IRT's investors' website. IRT does not undertake to update forward-looking statements on this call or with respect to matters described herein, except as may be required by law. With that, it's my pleasure to turn the call over to Scott Schaefer.

Thanks, Stephanie, and thank you all for joining us this morning. I'm happy to report that 2025 is unfolding largely as we anticipated, despite the macroeconomic uncertainties that have emerged since our last call. We are on track to achieve both our full-year same-store NOI and core FFO per share guidance. Our communities are well-located in areas with strong population and employment growth and will continue to outperform even during periods of economic uncertainty. First quarter results were solid. We delivered 2.7% same-store NOI growth, driven by a 100 basis point increase in average occupancy year over year, as well as an increase in our average effective rent since the first quarter of last year. Value-add renovations also contributed to our same-store results. During the quarter, we completed 275 units and achieved a weighted average return on investment of 16.2%. We now have 28 communities with over 4,600 units in our ongoing value-add program and expect to complete between 2,500 and 3,000 units this year at our targeted RLIs. We continue to execute on our long-term investment strategy. During the quarter, we sold our final asset in Birmingham, Alabama, for $111 million, which completed our exit from that market. And we expanded scale in Indianapolis by purchasing a 280-unit community for $59.5 million at a 5.6% economic cap rate. We also entered into a new joint venture investment that will develop 324 units in Charleston, South Carolina. We are under contract on two additional communities with a combined purchase price of approximately $155 million. One asset located in Rwanda was developed in 2019, is adjacent to an existing IRT-owned community, and will provide many operating synergies. The second property is a newly developed community in Colorado Springs that is in lease-up. These investments will provide an economic cap rate in the high fives during year one. Beyond these pending transactions, our acquisition pipeline remains strong. As Jim will discuss, we have ample liquidity to deploy into these and other accretive investments. Regarding our markets, apartment fundamentals will improve across the portfolio during this year, as prior deliveries are absorbed and new supply deliveries decrease sharply from recent peak levels. In 2024, approximately 79,000 new apartment units were delivered across our submarkets, representing 6.1% of existing supply. We expect 32,000 new deliveries in 2025 and only 24,000 units in 2026, representing 2% and 1.5% of existing supply, respectively. These deliveries equate to annual decrease of 60% in 2025 and an additional 24% in 2026. We expect our Sunbelt markets will benefit the most from expected declines in new apartment deliveries this year. Demand for our portfolio of high-quality, largely Class B communities has proven to be resilient over the years, even during challenging economic times, as demonstrated by our stable occupancy rates and positive blended rent growth. During 2024, nationwide new deliveries of multifamily units exceeded absorption, resulting in a negative net absorption of 21%. In 2025, while the national apartment market is expected to see positive net absorption of 1.5%, our submarkets are forecasted to rebound strongly and enjoy positive net absorption of 8.5%, as increases in population outpace new supply. Longer term, IRT submarkets are forecasted to see population growth of seven people for every one newly delivered apartment over the next three years. Additionally, homeownership affordability factors that include elevated mortgage rates and home prices continue to favor renting. Across our top ten markets, average homeownership costs are 94% higher than IRT's monthly rent. Importantly, IRT's average resident rent-to-income ratio is stable at approximately 21%, indicating our residents are on solid financial footing. As I mentioned earlier, we are sensitive to the macroeconomic uncertainties that have emerged since our last call. However, we believe supply and demand fundamentals in our markets will continue to be the dominant influence on our operations. Based on our outlook for continued strong demand and significant declines in new supply, our 2025 plan continues to assume ongoing rental rate gains without sacrificing occupancy. First quarter results have demonstrated this to date, and we expect this dynamic to accelerate as we advance into 2026. Before handing the call over to Jim, I want to thank the IRT team for their continued hard work and dedication to delivering exceptional service to our residents. I'll now turn the call over to Jim.

Thanks, Scott, and good morning, everyone. Core FFO per share of $0.27 in the first quarter of 2025 was flat as compared to the prior year period, reflecting the impact of the final stages of our portfolio optimization and deleveraging strategy that was completed last year. Same-store NOI grew 2.7% in the quarter, comprised of a 2.3% increase in same-store revenue and a 1.6% increase in operating expenses over the prior year. As we forecasted, same-store revenue growth was driven by a 100-basis point increase in average occupancy, a 90-basis point increase in average effective monthly rents, and 50-basis points of lower-bid debt compared to the prior year. Same-store operating expense growth in the quarter reflected a 2.9% increase in controllable expenses, driven by higher contract services and advertising. These increases were partially offset by a 30-basis point decrease in non-controllable expenses. Overall, lower repair and maintenance costs, turn costs, and property insurance costs kept total expense growth below inflation levels during Q1 of 2025. Regarding recent leasing trends, the year is unfolding as expected, broadly speaking. For our like-term leases during Q1, our blended rental rate growth was up 10 basis points, with new lease rates down 4.6 percent and renewal rents up 4.8 percent. Please keep in mind that during Q1 2025, only 12 percent of our leases expires. For Q1 2025, our resident retention rate was 59.5 percent, and our rate of resident renewals was 68.6 percent. Regarding investment activity, during the first quarter, we sold a property in Birmingham, Alabama for $111 million representing a 5.6% economic cap rate, and we recognized a $55 million tax gain. As Scott mentioned, we acquired a community in Indianapolis for $59.5 million, which was a 5.6% economic cap rate, and the property is a candidate for our value-add program. We also entered into a new joint venture to develop a 324-unit community in Charleston, South Carolina, which is targeted for delivery in the second quarter of 2027 at an anticipated yield-on cost of 6.8%. Our balance sheet is strong with low risk. We ended the quarter with a net debt-to-adjusted EBITDA ratio of 6.3 times, which is higher than our fourth quarter 2024 ratio due to seasonally lower Q1 EBITDA associated with seasonally higher operating expenses. We remain on track to achieve a mid-five net debt to adjusted EBITDA ratio by year-end 2025. Including principal amortization, only 17% of our total debt matures between now and year-end 2027, which is one of the lowest among public multifamily peers. In March, we entered into a new one-year $100 million SOFR swap, resulting in 100% of our debt being fixed and or hedged. Lastly, we have nearly $750 million of liquidity to fund accretive investments. With respect to our financial outlook for 2025, we are certainly aware of the potential for an economic slowdown. However, in our submarkets, we see pricing power in front of us and accordingly are not making any changes to our guidance. Scott, back to you. Thanks, Jim.

We are off to a solid start to the year and continue to believe that we are at the beginning of a multi-year period of improving fundamentals and growth. Because of our portfolio's market concentrations, waning supply pressures, and strong balance sheet, we expect our portfolio and platform will continue to outperform in 2025 and enter 2026 with solid earnings momentum and growth opportunities. We thank you for joining us today and look forward to seeing many of you at the Wells Fargo Conference next week and the NAIREE Conference in June. Operator, you can now open the call for questions.

At this time, if you would like to ask a question, press star followed by the number one on your telephone keypad. If your question has been answered and you would like to remove yourself from the queue, press star followed by the number one. Your first question is from the line of Brad Heffern with RBC.

Hey, good morning, everyone. Can you walk through the leading spreads for the first quarter, obviously below guidance? Why was that, and does it change your view at all on the original spread guidance for the full year?

Thanks, Brad. But, you know, I'll obviously give you some commentary. You know, Janice or Scott obviously jumped in. You know, leasing spreads, new leases were down 4.6% in the first quarter. Renewals were up 4.8%. You know, obviously, in terms of the trajectory throughout the year, as well as the full-year guide, you know, obviously, there's a lot of facets to the question. You know, I think when you compare that trajectory from Q4 to Q1 for us, you compare it versus our peers, you know, I just want to remind everybody that we have predominantly a B-class portfolio, and as a result, didn't really experience the same level of decline in rental rates as some of our peers did, because they're mainly a Class A portfolio and compete more with the new supply that was delivered. You know, secondly, you know, the trends that we're seeing month to month so far this year continue to be very positive. We continue to see, you know, If January was better, February is better than January, that continues all the way through April. So we're quite excited about that kind of development of the waning pressure from new supply that we kind of highlighted earlier this year and really kind of seeing that, you know, improving rental rate growth in the back half of the year.

Got it. And then on the tenant level, have you seen any evidence yet of stress from the tariffs, macro uncertainty, et cetera?

Good morning. Overall, we've not felt any effects from the tariffs and or from deportations. I think it's a little early, but we are watching it extremely closely, and we have great faith in our teams that we will be able to offset and continue to outperform as we've done in the past with economic uncertainty.

And just to add on to that, you know, in the first quarter of this year, our bad debt was roughly down 50 basis points versus Q1 of last year. So a lot of the initiatives we took in place to kind of deal with fraud have working, and we haven't seen a related kind of uptick because of hardships or anything else.

So we're seeing the good progression that we anticipated.

Your next question is from the line of Austin Werschmidt with Keybake Capital Markets.

Great. Thanks. Good morning, everybody. Jim, you mentioned month-to-month improvement in market rents this year. is that starting to lead to acceleration in leasing spreads as we get into the second quarter or if you compare kind of the trade-outs for like-term leases?

Yeah, the comment was more directed at the improvement in the trade-outs that we're seeing. You know, the trade-outs in February were better than January, March were better than February, and April was better than March. Obviously, we're getting away from talking about specific numbers, you know, month to month, But just, you know, kind of general trajectory is that it is improving at the pace that we anticipated. And we, as we mentioned earlier, you know, we really do see the pressure from new supply waning in the back debt for the year. And that's really going to help accelerate further more, more accelerated the back debt for the year.

That's helpful. And then can you just speak to maybe how trends are playing out on the ground from a traffic and conversion perspective versus prior years? And just give us a sense of when you kind of think that new lease rate growth, you know, might turn positive. Just wondering if there's kind of any change in that expectation.

Yeah, you know, from the standpoint of the leasing traffic on the ground, you know, here in May and so far for kind of April as well as March, you know, the demand is up roughly 20% to 25% versus the same time period last year. So the demand is increasing. And I would generally say that, you know, the conversion is still kind of relatively the same as last year. So we're beginning to see kind of upward trajectory to obviously that least rate growth and then obviously occupancy. I don't know, Janet, do you want to kind of add any additional comments?

Yeah, I think seasonality is playing out as anticipated. And we're seeing some great demands in the market.

Your next question is from the line of John Kim with BMO Capital Markets.

Just to clarify on what you're seeing in April and May, you discussed, Jim, that price and power is in front of you, and I just want to make sure that that commentary was based on what you're seeing on new lease rates and renewals on what you're finding in April and May so far.

Yeah, the commentary is on, obviously, blended rental rates. And yes, obviously, both that trajectory is developing positively for both new leases and the overall blended rates.

Do you anticipate starting or sourcing more development opportunities this year? You mentioned the one in Charleston will be developed at a 6.8% yield. It seems like there could be some more opportunities that attract yield spreads to acquisitions. But I'm wondering what you're seeing on the ground if you anticipate putting more capital in developments.

Hey, John. This is Scott. We're seeing a lot of opportunities. You know, we're very cognizant of our cost of capital. And, you know, we have over, you know, since we started that program, you know, limited our exposure to the development just as a management of the balance sheet risk or the risk to the balance sheet. But we are seeing opportunities. The one in Charleston was particularly attractive to us because we have some, a couple of assets in Charleston and have been looking to grow there, but have found it difficult to buy accretively. So this was a way to, you know, invest in an asset, giving us the option to buy it when it's completed, hopefully at a good return.

Next question is from the line of Eric Wolf with Citigroup.

Hey, thanks. Can you just talk about the decision to raise capital on the APM and sort of how you're thinking about the spread between your cost of capital and where you can acquire assets today and what that opportunity set looks like?

Sure. Yeah, you know, obviously when we did the September equity raise last year and ATM raised in fourth quarter and then some additional ATM in the first quarter. You know, the break-even, call it economic cap rate, for it to be accreted from an earnings standpoint is in the kind of 5.4% range. And as we've been able to demonstrate, you know, we're able to, you know, purchase assets with a year one, you know, economic cap rate of 5, 6 or north. So the deals we're doing are accreted from an earnings standpoint. So for us, you know, to continue to raise capital when the market's kind of given us a go signal, it makes a lot of sense, especially when we believe we can put it to work. The two deals, and you kind of heard us talk about it in our prepared remarks, the two deals that are under contract, the one in Orlando and the new build in Colorado Springs, you know, that blended economic cap rate is a, you know, high five, roughly 5.8% year one.

That's helpful. And then let me just follow up on the sort of blended spreads. It looks like the sort of all-in blended spreads are a bit lower than your like-term spreads, And I think you mentioned before that the reason is you're trying to move away from short-term leases and extend duration on those leases. Can you just talk about sort of when you began that process and why you began that process and sort of how long you think that will impact your sort of overall rent growth?

Yeah, so we started that process in the mid part of last year. And as you can imagine, it takes, you know, almost a year for us to fully kind of go through the process. So we would expect that transition from less short-term leases and more long-term leases to be almost done by the middle part of this year. Obviously, it's always market-driven. You know, when a prospect comes in, they have the option to choose, you know, at whatever the rates are for a three-month lease up to a 12- or 13-month lease. And that is a little bit out of our control. but we certainly kind of look at, you know, setting the premiums to go from a longer-term lease to a shorter-term lease to, you know, kind of influence the expiration curve so that the expirations are happening in the period of time where you have the highest leasing traffic.

The next question is from a line of Amy ProBet with UBS.

Hi, thanks. So you're passing the last of the easy comps on occupancy, and the occupancy comps are then normalized starting in the next quarter. So I'm just wondering how we should be thinking about the cadence of same-star revenue from here and if there are any other pieces outside of the rent spreads themselves that could be leading to some lumpiness in same-star revenue through the year.

Yeah, obviously you're absolutely right. You know, occupancy was a big lift here in the first quarter relative to the first quarter of last year. You know, second quarter, third quarter, and fourth quarter, you know, the revenue growth is really kind of going to come from both the rental rate growth as well as the reduction in bad debt that we forecast throughout the year. I would say, generally speaking, the reduction in bad debt throughout the year will continue to kind of pace. I think our original forecast kind of had us getting a call 1.4 to 1.5% of revenue this year. And we ended, we're right about 1.8% today, and it'll kind of move down to call 1.2 to 1.3, the average out to that 1.4. And then obviously the rent growth trajectory is really going to benefit us

in the second half of the year. Got it. And then as we move past supply, how are you thinking about the relative performance between the Bs and the A's or the

renovated Bs? In terms of the relative performance of just rent growth or occupancy?

Yeah, rent growth. Yeah, mainly rent growth. But if you could touch on some of the demand

trends that you might see as well? Yeah, you know, we continue to see, we're predominantly Class B, you know, property or portfolio. We continue to see really good demands for obviously the Class B product. You know, the value-add units or the units, when they do go into the renovation program, are pretty much always pre-leased. We really don't have, you know, kind of excess inventory on the value-add communities. You know, the Class A deals that we do have, they did compete a little more with some of the new supply that was delivered, but we still see, you know, demand trends picking up there. But the B continues to see just nice, stable demand.

The question is from a line of Jamie Fieldman with Wells Fargo.

Great. Thanks, and good morning. Can you talk about costs on your redevelopment program and the potential impact from tariffs? How early are you locking costs ahead of projects and how sustainable are your mid-single-digit returns on investment if we see costs move 10% higher or more?

Yeah, it's a great question. You know, for the vast majority of our costs in the renovation program, you know, obviously there's a good chunk of it that is labor to, you know, obviously do the actual turn. Some of the more, you know, product-heavy costs are in the value-add, in the actual vinyl flooring that we'll put in or in the appliances. A good chunk of the appliances come from, you know, manufacturers inside of America, so we don't necessarily have a huge tariff issue there, unless obviously they have tariff issues sourcing raw materials from, you know, non-U.S. countries. The vast majority of the vinyl flooring will either come from Vietnam or South Korea, and we've already locked in pricing for 2025, for a full year. So at this point, we're really not expecting any kind of really significant pressure on the value add, but that's where if there is issues in the tariff and trade world, that's where we at IRT will expect to see it. But as you can imagine, it's still very early to tell.

Okay, thanks for that. And then just thinking more about the blend, it looks like your new and renewals or inline is slightly better than your March update, but more new leases took the blend down. Can you talk about – did you take back any more delinquent units that would have changed the blend in occupancy as you did your leasing and focused on your leasing?

In our delinquent units maintained, we did see a decrease of 50 basis points in our bad debt from year over year. And so we're anticipating that to continue to decrease to achieve guidance as well. So we did have early terms that contributed to that mix, but it was relatively normal for this year.

Your next question is from the line of Linda Tassai with Jeffrey. Linda, your line is open.

There's no response.

Yeah, because we can move to the next analyst.

Your next question comes from the line of John Pawlowski with Green Street.

Hey, thanks for the time. A few questions about the thought process and the assumptions underpinning the full-year revenue guide. I know it sounds like you're assuming supply comes down pretty substantially this year. Can you help frame your job growth assumptions for 2025, how that kind of compares to the job growth you saw across your footprint in 2024?

Yeah, I don't have the job growth assumptions right in front of me. I would say that, you know, some of the data points that we've talked about in the past where you have both obviously population and job growth per unit of new supply. Over the last three years, you know, that ratio of kind of population growth to supply growth in our submarkets was, I think, 3.8 people for every new supply. In the next three years, so 2025, 2026, 2027, that ratio is going to be roughly seven times. I do know that, you know, obviously when you look at the supply trends, you know, we delivered or in 2024, the deliveries were about 6% of existing stock in our submarkets. And in 2025, that's going to drop to about 2%. So the job growth and the population growth, we think, is just generally relatively steady with the circle trends. It's just the supply is really dropping off.

Yeah, and I would add to that, you know, as we stated in the prepared remarks, that according to CoStar, there was a negative absorption in 2024 of 21%. And while nationwide, 2025 is expected to have a 1.5% positive absorption, and while our sub-markets specifically will be 8.5% positive absorption. So, according to CoStar, that indicates continued job growth and far, far less new supply, which is what we're seeing as we move through 2025.

And on that point, it would be helpful just to maybe hear you talk through a few of the most heavily supply markets right now, you know, the Denver, sorry, the Raleigh's, the Atlanta's, and just any statistics that you could point to and say, hey, this inflection point's happening right now, rent spreads are about to leg higher, you know, the exact numbers any given quarter I'm less concerned about. It's just, it doesn't feel like the light is turning on in some of these heavy supplied markets. So, any data points that give you confidence for this big reacceleration that seems to be underpinning the revenue guidance would be

helpful to hear? Sure. We see, you know, Charlotte and Colorado are going to continue to have some supply pressures throughout 24. And so, I'm sorry, 25. So, we will be, you know, looking to outperform and maintain not only occupancy but maximize revenue where we can. Atlanta and Raleigh, we've seen a positive new lease rent growth since January and less negative new lease growth with a trajectory where it's becoming, you know, less and less every month. And I think that is starting to be about a point that shows the trajectory of the supply. Just as a little aside, you know, with some specific numbers, in terms of supply growth,

When you look at this pickup market like a lamb, which is our largest market, you know, in 2024, the new delivery that occurred was about 6% of existing stock in our sub-markets, not even just the overall, just in our sub-markets. For 2025, CoStar estimates that to be 90 basis points, a significant fall-off.

Your next question is from the line of Jamie Feldman from Wells Fargo.

Thanks for taking the fall-off question.

I just wanted to follow up on the expense side. You have two insurance renewals coming here in May and June. So far, we've seen declines in insurance premiums year-to-date from some of your peers. So, curious how you're thinking about the renewal in terms of your expectations and what's in your guidance. And then any other OPEX line items we should be thinking about where you could see some benefits here?

Sure. Good question. You know, we have two insurance renewals. Our property and casualty will renew on May 15th, and our liability will renew on July 1st, not June. So still a little bit early on the property and casualty, and I don't want to obviously, you know, talk about, you know, too much specifics. Our guidance at this point assumed a 10% increase for the year, but we are expecting to generate a decrease in the premium once the renewal is signed. So that's a little bit early, but I don't want to give kind of too much direction in terms of the quantification of it yet until it's really firm. The liability premium or liability policy that we'll renew in early July, we are expecting an increase. But overall, between both policies, it is expected to be a net decrease.

The liability expense is far smaller. Insurance premium expense is far smaller than the property and housing.

Okay. So just to make sure I heard it right, you're assuming a 10% increase, but you think it'll be meaningfully lower, maybe even a decrease?

Yes.

Okay. That's nice. And then any other OpEx line items we should be thinking about that, you know, you think are either trending in line with guidance or things might be changing, better or worse?

Yeah, I would say one of the items that I mentioned in the prepared remarks that trended in the Q1 better than guidance was repairs and maintenance and turnover costs. We just had better retention than we would originally assume in guidance. That's obviously sticky rather than a timing thing, and that obviously will move in shape throughout the year as retention changes. And I would say the rest of the categories continue to kind of be in line with guidance. The big boy of real estate taxes, that is a TBD that we won't get the vast majority of our assessments in until a call at the end of June, early mid-July. So we'll have a lot more commentary for, obviously, you and the market in our July earnings call.

Our next question is from a line of Linda Tassai with Jeffries.

Sorry about that earlier, and I might have missed this. So you exited Birmingham. Are there any other markets you would expect to exit by year end?

Yeah, at this point, no. Our dispositions, you know, guidance is currently, you know, complete. We're obviously always reviewing the portfolio, but there's no expected, you know, changes at this very moment. And, you know, once there is an update, we'll be obviously happy to give it.

And then in terms of June and July being your highest expiration months, kind of any initial color you could give there?

In terms of leasing, velocity, I mean, yeah, you're right. June and July are our highest expiration months. Obviously, Janice and the team are working expeditiously to try to drive leasing ahead of those expiration months. As I mentioned, here in the month of May, the net demand is 25% better this year than it was last year at this point. So we're excited about kind of where we are heading into the leasing season. And we're trying to continue to keep retention as high as we can to really offset any kind of negative new lease pressure or at least pressure in the back of the year so we can really take advantage of that waning supply.

As a reminder, if you would like to ask a question, press star, followed by the number one on your telephone keypad. Your next question is from the line of Mason Gall, Baird.

Thanks. Good morning, everyone. Can you talk about the blend difference between your Midwest and Sunbelt markets in general

and then kind of how you expect that to trend throughout the year?

We have anticipated blends in the Midwest where, you know, anywhere between 2% to 3% based on seasonality. And then in our Sun Belt, we're starting to see positive trajectory on our blended from January through April, and we'll continue to see that through the rest of the year.

Thanks for that. And then on your acquisitions, I mean, you guys expect to acquire one and lease up and one stabilized. I guess going forward, do you have a preference for one or the other, or do you kind of see it as more opportunistic?

It's more opportunistic. You know, there are certain markets where we're looking to add exposure. But, you know, as I said before, we're always focused on doing or acquiring assets that will be accretive to earnings in year one. I will add that everything in our pipeline today is – the values would be below replacement cost. So, you know, we think any acquisition, you know, will fare well, you know, over the next few years.

You have a follow-up question from the line of Linda Pesai with Jeffries.

Hi, thanks. I just want to ask – I know Class B is holding up a bit better, and that's the majority of your portfolio. Any sort of color around the delta between the performance of Class A versus B?

I apologize.

You broke up at the beginning of the question. Would you mind just starting it over again?

Sure. Class B is holding up better within your portfolio, which I understand is the majority. I was just wondering what the delta is in performance between Class A and Class B.

Yeah, I don't have the NOI kind of differences right now between the A's and the B's. I would say that the rental rate growth is certainly better in the Bs. The blends in the first quarter on the B portfolio was about positive, call it, you know, 40 basis points. And the blends on the Class A, which is only 17 properties, was about minus, call it, 80 basis points.

Thank you. This concludes today's call. We thank you for joining. You may now disconnect your lines.