The company repurchased 2,973 shares of common stock at an average price of $37.90 per share, as part of an existing share repurchase program. This leaves 12,027 shares available for repurchase under the program.

Total capital expenditures decreased slightly from $55.0 million to $54.3 million year-over-year. This decrease was primarily due to a decrease in major renovations.

The company is a defendant in antitrust cases alleging violations by RealPage, a vendor providing revenue management software, and is aware of governmental investigations regarding antitrust matters in the multifamily industry. The outcome and potential losses are uncertain.

Approximately 72.7% of total NOI was generated from communities located in Metropolitan D.C., Boston, Orange County, the San Francisco Bay Area, Dallas, New York, Seattle and Tampa. Adverse conditions in these markets could have a greater impact on results.

The company has approximately $531.6 million of variable rate indebtedness outstanding, which constitutes approximately 9.2% of total outstanding indebtedness. An increase in interest rates would increase interest expense.

NOI for same-store community properties increased 1.2%, or $3.2 million, for the three months ended March 31, 2024 compared to the same period in 2023. The increase in property NOI was attributable to a 3.1%, or $11.5 million, increase in property rental income, partially offset by a 7.5%, or $8.3 million, increase in operating expenses.

The company's apartment communities compete with numerous housing alternatives in attracting residents, including other apartment communities, condominiums and single-family rental homes. Competitive housing in a particular area could adversely affect the ability to lease apartment homes and increase or maintain rents.

The operating margin (property net operating income divided by property rental income) was 68.7% and 69.9% for the three months ended March 31, 2024 and 2023, respectively.

The increase in property NOI was partially offset by a 7.5%, or $8.3 million, increase in operating expenses. The increase in operating expenses was primarily driven by a 31.2%, or $4.2 million, increase in personnel costs primarily due to a refundable payroll tax credit related to the Employee Retention Credit program in 2023, a 9.7%, or $2.1 million, increase in repair and maintenance expense due to an increase in the cost per home of those that were turned during the quarter, the impact of inflation on third party vendor costs and weather-related events and a 2.3%, or $1.0 million, increase in real estate taxes due to higher assessed valuations.