The Company acquired ARLO Mountain View and consolidated a 75-apartment community in Sunnyvale, CA, expanding its presence in key markets. These acquisitions contributed to the increase in Non-Same Property Revenues, which grew by 104.4% year-over-year.

The Company acquired its joint venture partner's interest in four apartment communities for $505.0 million. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $138.3 million.

The Operating Partnership issued $350.0 million of senior unsecured notes due in 2034 and repaid $400 million of senior unsecured notes at maturity. This refinancing activity optimizes the capital structure and provides financial flexibility.

The Company's average financial occupancy for the Company's Same-Property portfolio was 96.2% and 96.6% for the three months ended June 30, 2024 and 2023, respectively. This indicates that the company is maintaining a high level of occupancy in its properties.

The Company repaid $219.9 million of debt encumbering the properties and consolidated the communities. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $138.3 million.

The Company received cash of $10.3 million for the partial redemption of a preferred equity investment in a joint venture that holds property located in Washington. The remaining balance as of June 2024, has a preferred return of 12.0% with an extended maturity date of June 2029.

Interest expense increased by $6.5 million or 12.4% to $59.1 million for the second quarter of 2024 compared to $52.6 million for the second quarter of 2023, primarily due to borrowing on the $300.0 million unsecured term loan in April 2023, the $298.0 million of 10-year secured loans closed in July 2023, the issuance in March 2024 of $350.0 million senior unsecured notes due April 2034, and increased borrowing on the two unsecured lines of credit.

The company intends to vigorously defend against these lawsuits. Given their early stage, the Company is unable to predict the outcome or estimate the amount of loss, if any, that may result from such matters.

The Company is emerging from restrictions resulting from the COVID-19 pandemic and continues to comply with the stated intent of local, county, state and federal laws, some of which limit rent increases during times of emergency and impair the ability to collect unpaid rent during certain timeframes and in various regions in which our communities are located, impacting the Company and its properties.

The Company's average financial occupancy for the Company's Same-Property portfolio was 96.2% and 96.6% for the three months ended June 30, 2024 and 2023, respectively. This indicates that the company is maintaining a high level of occupancy in its properties despite competitive pressures.

The Company acquired ARLO Mountain View and consolidated a 75-apartment community in Sunnyvale, CA, expanding its presence in key markets. These acquisitions contributed to the increase in Non-Same Property Revenues, which grew by 104.4% year-over-year.

As of June 30, 2024, the Company owned or had ownership interests in 255 operating apartment communities, comprising 62,510 apartment homes, excluding the Company's ownership interest in preferred equity co-investments, loan investments, and three operating commercial buildings. The operating apartment communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas.

Property operating expenses, excluding real estate taxes increased by $4.9 million or 6.6% to $78.7 million for the second quarter of 2024 compared to $73.8 million for the second quarter of 2023, primarily due to increases of $2.6 million in administrative expenses, $2.0 million in utilities expenses, and $1.1 million in personnel costs, offset by a decrease of $0.8 million in maintenance and repairs expenses.

Same-Property operating expenses, excluding real estate taxes, increased by $3.6 million or 4.9% to $76.5 million in the second quarter of 2024 compared to $72.9 million in the second quarter of 2023, primarily due to increases of $2.5 million in insurance and other expenses, $1.3 million in utilities expenses, $0.6 million in personnel costs, and $0.3 million in administrative expenses, offset by a decrease of $1.1 million in maintenance and repairs expenses.

In March 2024, the Company acquired its joint venture partner, BEXAEW LLC's ("BEXAEW") 49.9% interest in four apartment communities, consisting of 1,480 apartment homes, valued at $505.0 million on a gross basis. Concurrent with the acquisition, the Company repaid $219.9 million of debt encumbering the properties and consolidated the communities.

Equity income from co-investments decreased by $2.5 million or 20.5% to $9.7 million for the second quarter of 2024 compared to $12.2 million for the second quarter of 2023, primarily due to decreases of $1.9 million in income from preferred equity investments including income from early redemption of a preferred equity investment, and $1.1 million from equity income from non-core technology co-investments.

In late 2022 and early 2023, a number of purported class actions were filed against RealPage, Inc., a seller of revenue management software, and various lessors of multifamily housing which utilize this software, including the Company. The complaints allege collusion among defendants to artificially increase rents of multifamily residential real estate above competitive levels. The Company intends to vigorously defend against these lawsuits.

The long-term impact of these developments will largely depend on future laws that may be enacted, the impact on job growth and the broader economy, and reactions by consumers, companies, governmental entities and capital markets.

The Operating Partnership issued $350.0 million of senior unsecured notes due in 2034 and repaid $400 million of senior unsecured notes at maturity. This refinancing activity optimizes the capital structure and provides financial flexibility.

During the six months ended June 30, 2024, the Company did not repurchase any shares and as of June 30, 2024, the Company had $302.7 million of purchase authority remaining under its $500.0 million stock repurchase plan.

The Company acquired ARLO Mountain View and consolidated a 75-apartment community in Sunnyvale, CA, expanding its presence in key markets. These acquisitions contributed to the increase in Non-Same Property Revenues, which grew by 104.4% year-over-year.

The Company's $1.2 billion credit facility had an interest rate at the Adjusted Secured Overnight Financing Rate ("Adjusted SOFR") plus 0.765%, which is based on a tiered rate structure tied to the Company's credit ratings, adjusted for the Company's sustainability metric grid.

The filing does not provide any specific information on new environmental, social, or governance initiatives.

The filing does not discuss sustainability risks or opportunities.

The Company is emerging from restrictions resulting from the COVID-19 pandemic and continues to comply with the stated intent of local, county, state and federal laws, some of which limit rent increases during times of emergency and impair the ability to collect unpaid rent during certain timeframes and in various regions in which our communities are located, impacting the Company and its properties.

Concurrently, geopolitical tensions and regional conflicts have increased uncertainty during 2023 and 2024. Inflation has caused an increase in consumer prices, thereby reducing purchasing power and elevating the risks of a recession.

Due to increased inflation, the U.S. Federal Reserve raised the federal funds rate a total of seven times during 2022 and four times in 2023. In response, market interest rates have increased significantly during this time.