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DATE
Tuesday, October 28, 2025 at 11 a.m. ET
CALL PARTICIPANTS
Chief Financial Officer — Kristen Griffith
Chief Investment Officer — Matthew Ryan McGraner
Chief Accounting Officer — Bonner McDermett
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TAKEAWAYS
Net Loss -- $7.8 million, or $0.31 per diluted share in the third quarter, compared to a net loss of $8.9 million, or $0.35 per diluted share, in Q3 2024.
Total Revenue -- $62.8 million in the third quarter, down from $64.1 million in the same period last year.
NOI (Net Operating Income) -- For 2025, NOI was $38.8 million on 35 properties, compared to $38.1 million for 2024 on 36 properties.
Same-Store NOI Growth -- 3.5% increase in same-store NOI compared to Q3 2024, while same-store revenues decreased 0.6% in Q3 2025 and same-store expenses fell 6.2%.
Same-Store Rent and Occupancy -- Rent declined 0.3% and occupancy fell 1.3% year over year in Q3 2025. Same-store rents declined 0.2% sequentially from Q2 to Q3 2025.
Core FFO -- $17.7 million, or $0.70 per diluted share of core FFO in Q3 2025, compared to $0.59 per diluted share in Q3 2024.
Portfolio Upgrades -- 365 upgrades completed and 297 upgraded units leased in Q3 2025, producing an average $72 monthly rent premium in Q3 2025 and a 20.1% return on investment in Q3 2025.
Dividend -- Paid $0.51 per share in Q3 2025, with a 73.2% payout ratio to core FFO in Q3 2025 and 1.37x coverage by core FFO in Q3 2025. The next quarterly dividend is $0.53 per share, up 3.9%, payable on 12/31/2025.
NAV Range -- Updated NAV per share estimated at $43.40 to $56.24, with a midpoint NAV per share of $49.82, based on cap rates of 5.25% to 5.75%.
2025 Guidance Midpoints -- Affirmed net-loss-per-diluted-share guidance (full year 2025 midpoint negative $1.31) and core-FFO-per-diluted-share guidance (midpoint $2.75) for full year 2025.
Expense Reductions -- Same-store operating expenses declined 6.3% year over year in Q3 2025; payroll and R&M down 7.5% and 6.1%, respectively, year over year in Q3 2025; insurance costs reduced 19% year over year in the third quarter, and real estate taxes down 8.7% year over year in the third quarter.
Same-Store NOI Margins -- Achieved a 62.2% same -store NOI margin in Q3 2025 for the same-store portfolio.
Renewal Activity -- Renewal conversions reached 63.6% in Q3 2025, with 646 renewals signed at an average increase of 1.81%.
Occupancy -- Portfolio occupancy was 93.6% at quarter’s end in Q3 2025 and currently stands at 93.6% occupied and 95.8% leased as of Q3 2025.
Blended Lease Rates -- New leases in Q3 2025 were down 4.06%, while renewals were up 1.94% in Q3 2025; and the blended lease rate fell 44 basis points in Q3 2025. The blended rate for October 2025 was down 1%.
Maintenance Capex -- Maintenance CapEx totaled about $9 million in the quarter and was elevated in Q3 2025 due to fewer asset sales and certain nonrecurring projects.
Capital Recycling -- NexPoint awarded the opportunity to acquire a 321-unit property in North Las Vegas, projecting a 7% same-store NOI CAGR over the next five years; intends to recycle capital via asset sales in 2026 using tax-advantaged 1031 reverse exchanges.
Stock Buybacks -- Management reiterated prioritization of share repurchases in the "low thirties" price range alongside targeted external growth investments.
SUMMARY
NexPoint (NXRT +2.23%) management emphasized ongoing expense-control measures, which contributed to NOI margin expansion and improved core FFO per share in Q3 2025. Strategic commentary highlighted a disciplined capital-recycling approach centered on executing select acquisitions and realizing gains through asset sales using tax-efficient methods. The leadership team reaffirmed its intention to utilize proceeds for both targeted real estate investments and stock buybacks, citing persistent NAV discount and longer-term value realization.
Guidance for loss-per-share and core-FFO-per-share midpoints for full year 2025 remained unchanged, as the company reported operational resilience amid moderating rental revenue trends. New lease pricing faced competitive pressure, but steady renewal increases and high occupancy rates underpinned stable portfolio performance entering year-end.
Matthew Ryan McGraner stated, "Our goal is to hit $170 million of NOI by 2027. It's that simple," outlining a clear long-term target.
Chief Accounting Officer Bonner McDermett disclosed a one-time real estate tax benefit of approximately $808,120, clarifying that part of the Q3 2025 expense improvement was nonrecurring.
Management expects declining new multifamily supply deliveries in 2026 and 2027, with 2025 net deliveries forecast at 508,000 units, then falling 49% in 2026 and a further 20% in 2027.
Portfolio submarket analysis indicated 5 of 10 markets may reach stabilization (92% occupancy for submarkets, 70% for new builds) by Q1 2026, expanding to all markets by year-end, driven by job growth and corporate relocations.
Leadership intends to "absolutely prioritize stock buybacks as well in the low thirties over the near term" while completing the North Las Vegas acquisition and capital recycling initiatives for accretive growth into 2027 through 2030.
INDUSTRY GLOSSARY
Core FFO: Core funds from operations, a non-GAAP measure of REIT operating performance that excludes certain nonrecurring items, providing a view of recurring cash flows.
NOI (Net Operating Income): Property-level income after operating expenses but before interest, taxes, depreciation, and amortization; key REIT profitability metric.
Cap Rate: Capitalization rate, calculated by dividing property net operating income by its purchase price or value, used to estimate returns and set asset values.
1031 Reverse Exchange: A tax-deferred real estate transaction strategy allowing the purchase of a replacement property before selling the relinquished asset, per IRS Section 1031.
R&M: Repairs and maintenance expenses incurred in operating multifamily portfolios.
Full Conference Call Transcript
Kristen Griffith: Good day, everyone, and welcome to the NexPoint Residential Trust, Inc. conference call. I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Securities Litigation Reform Act. We appreciate your time. I'll kick off the call and cover our Q3 results, updated NAV, and guidance outlook for the year. I will then turn it over to Matt to discuss the specifics on the leasing environment and metrics driving our performance and guidance. Results for Q3 are as follows. Net loss for the third quarter was $7.8 million or a loss of $0.31 per diluted share on total revenues of $62.8 million.
The $7.8 million net loss for the quarter compares to a net loss of $8.9 million or $0.35 loss per diluted share for the same period in 2024 on total revenue of $64.1 million. For 2025, NOI was $38.8 million on thirty-five properties, compared to $38.1 million for 2024 on thirty-six properties. For the quarter, same store rent and occupancy decreased 0.3% and 1.3%, respectively. This, coupled with a decrease in same store revenues of 0.6% and same store expenses of 6.2%, led to an increase in same store NOI of 3.5% as compared to Q3 2024. As compared to Q2 2025, rents for Q3 2025 on the same store portfolio were down 0.2% or $3.
We reported Q3 core FFO of $17.7 million or $0.70 per diluted share compared to $0.59 per diluted share in Q3 2024. During the third quarter, for the properties in the portfolio, we completed 365 full and partial upgrades, leased 297 upgraded units, achieving an average monthly rent premium of $72 and a 20.1% return on investment. Since inception, NXRT has completed the installation of 9,478 full and partial upgrades, 4,925 kitchen and laundry appliances, and 11,389 tech packages, resulting in $161.50 and $43 average monthly rental increase per unit, and 20.8% and 37.2% return on investment, respectively. NXRT paid a third quarter dividend of $0.51 per share of common stock on 09/30/2025.
For Q3, our dividend was 1.37 times covered by core FFO with a 73.2% payout ratio of core FFO. On 10/27/2025, the company's board approved a quarterly dividend of $0.53, a 3.9% increase from the previous dividend per share, payable on 12/31/2025 to stockholders of record on 12/15/2025. Since inception, NXRT has increased the dividend per share by 157.3%. Turning to the details of our updated NAV, based on our current estimate of cap rates in our market and forward NOI, we are reporting a NAV range per share as follows: $43.40 on the low end, $56.24 on the high end, and $49.82 at the midpoint.
These are based on average cap rates ranging from 5.25% on the low end and 5.75% on the high end, which remained stable quarter over quarter. Turning to full year 2025 guidance, NXRT is reaffirming guidance midpoint for loss per diluted share, core FFO per diluted share, same store rental income, same store total revenues, same store total expenses, and same store NOI, and tightening guidance ranges for acquisitions and dispositions. Loss per share or FFO ranges are as follows: Loss per diluted share negative $1.22 at the high end, negative $1.40 at the low end, with a midpoint of negative $1.31.
And for core FFO per diluted share, $2.84 at the high end, $2.66 at the low end, with affirming the midpoint of $2.75. This completes my prepared remarks. So I'll now turn it over to Matt for commentary on the portfolio.
Matthew Ryan McGraner: Thank you, Kristen. Let me start by going over our third quarter same store operational results. Same store total revenue was down 60 basis points, albeit with five of our ten markets averaging at least 1% growth, with Atlanta and South Florida leading the way at a positive 2.8% each. We are also pleased to report continued moderation in expense growth for the quarter. Third quarter same store operating expenses were down an impressive 6.3% year over year. Payroll and R&M declined 7.5% and 6.1%, respectively, with year over year total controllable expenses down a meaningful 6%. Insurance was also favorable by 19% driven by the team's efforts here and market improvement on the property casualty side.
Real estate taxes also decreased 8.7% due to favorable protest outcomes, most notably in our Nashville portfolio. Third quarter same store NOI growth continues to improve in our markets with the portfolio averaging a positive 3.5%, a marketable improvement from down 1.1% last quarter. Seven of our ten markets achieved year over year NOI growth of at least 2.5% or greater, with Nashville and Atlanta leading the way at 2.67% and 8% growth, respectively. Our Q3 same store NOI margin registered a healthy 62.2%. The portfolio experienced improved revenue growth also in Q3, with five out of our ten markets achieving growth of at least 1% or better.
Our top five markets were Atlanta and South Florida at 2.8%, Tampa at 2.4%, Raleigh at 2.1%, and Charlotte at 1%. Renewal conversions for eligible tenants were 63.6% for the quarter, with all ten markets executing positive renewal rate growth of at least 75 basis points or better. 646 renewals were signed during the quarter at an average of 1.81%. On the occupancy front, the portfolio registered at 93.6% occupancy as of the close of the quarter. Market competition from lease-up assets remains our biggest challenge, but clear skies are forming ahead. As of this morning, our portfolio is 93.6% occupied and 95.8% leased with a healthy sixty-day trend of 92%.
Even though we saw elevated pressures to occupancy and concession utilization, top line rent beat our internal forecast by 20 basis points for the quarter and bad debt continues to stabilize with a meaningful 32% year over year improvement for the quarter. Again, on expenses, they continue to moderate, finishing the quarter down 6.4%. Payroll declined 7.6% this quarter and continues to trend downward as we implement centralized teams and AI technology. Our centralized platforms for renewal, screening, call centers, alongside AI applications deployed across various aspects of the resident experience are all driving greater efficiency and enabling reductions in on-site staffing, particularly within the leasing offices.
As mentioned previously, we're now focused on optimizing our maintenance operations to drive similar efficiencies across our insurance, real estate taxes, R&M, and G&A were the other categories that saw meaningful year over year improvement for the quarter, with all categories improving at least 6.6% or more. Now turning to our updated view on supply. We believe we're close to the end of a record national new multifamily supply cycle. CoStar's seed annual net deliveries having peaked at 695,000 units in the trailing twelve-month period ending Q3 2024 and Q4 2024. This compares to annual net delivered units of 351,000 on average in the prior five years.
That's part of our prior five years being Q3 2014 to Q3 2019, and 282,000 units on average since 2001. CoStar forecasts net deliveries reached 697,000 units in 2024 and expected to be 508,000 units in 2025, before falling significantly year over year in 2026 by 49% and in 2027 by an additional 20%. A critical Q3 for deliveries followed by a steeper drop-off. For 2025, deliveries are 17% down quarter over quarter and is the last quarter with more than 100,000 units delivered. An increased expectation for Q3 2025 deliveries is followed by a significant drop-off to Q4 2025 deliveries that is now forecasted at just 69,000 units, down 52% year over year and 41% quarter over quarter.
This ushers in the start of a lengthy period where deliveries are expected to be below the long-run average and more bullish long-term forecast versus prior years. 2027 and 2028 delivery forecasts have also fallen. Those are now 2027 deliveries of 234,000 units that compares to forecast from December of 283,000 units, and 231,000 units for 2028 that compares to prior forecast of 308,000 units. That's down 27%. On the whole, cautious optimism best fits our rental market outlook. Looking better in places still challenged, but we have come to the time where market fundamentals are coalescing to support a more bullish outlook for multifamily.
We expect the rental market will take the lion's share of new household formation and outperform the for-sale market in the near term. While some markets still have supply issues, particularly in our fast-growing Sunbelt markets, demand is still there. We're absorbing units at a very strong clip right now, and part of that is due to the affordability challenge in the for-sale market. It's about twice as expensive on a monthly basis to own a home as it is to rent the average apartment in the US. During the quarter, the team reunderwrote each of our assets as if we were to buy them new today with a particular view on the submarket competition for lease-ups.
We tried to estimate based on historical lease-up trends when each of our submarkets that have supply pressures would indeed stabilize. We define submarket stabilization as 92% occupied with new construction deals being at least 70% leased. Our analysis showed that five of our ten markets should stabilize in the first quarter, six of the ten in the second, and eight of the ten in the third quarter of next year, with all markets stabilizing by year-end. Indeed, this could happen sooner as NXRT markets are littered with major job and corporate relocation announcements almost daily, across finance, technology, defense, logistics, manufacturing, and research.
Billions of capital and thousands of jobs across names such as Align Data Centers, AllianceBernstein, Apple, Bell, Textron, Fujifilm, Goldman, Intel, Microsoft, Oracle, TSMC, Wells Fargo have all hit our markets in the past six months alone. Again, more reason for cautious optimism. On the transaction front, buyer sentiment for multifamily purchasing continues to improve in Q3 according to CBRE and our own experiences. Institutional investor allocations to real estate are expected to tick up to 10.8% in 2026 according to institutional real estate allocations monitor. Firms like Blackstone remain bullish on commercial real estate investments given muted supply growth and lower cost of capital in the form of lower rates and tightening spreads.
Indeed, Blackstone in particular believes we're now approaching a steeper point in the price recovery and we share that view. We continue to actively monitor the sales market for opportunities and stay close to any movements on cap rates in our markets. Many investors remain sidelined, we see to return to the market as fundamentals improve. We're expecting to recycle capital in the next couple quarters against this transaction backdrop. We're excited to announce that NXRT has been awarded the opportunity to acquire a 321-unit multifamily community in the high-growth suburbs in Northern Las Vegas. This asset features a unit mix focused on two and three-bedroom floor plans ideal for young families and roommate situations.
Recent large-scale developments have driven significant expansion, job growth, and residential revitalizations in North Las Vegas, which is now the Las Vegas Valley's most prominent industrial market. Nearby, over 15 million square feet of industrial space currently under construction or planned, supporting the creation of approximately 8,000 jobs in this submarket alone. We've evaluated this asset to be structurally sound, well-located, and prime for value-add execution that is the best we have underwritten all year. We believe the asset has potential to generate a 7% same store NOI CAGR over the next five years.
Our plan will be to acquire the asset in late Q4, utilize the available capacity on the facility, and then we expect to execute one or more sales transactions in 2026 utilizing tax-efficient 1031 reverse exchange mechanics, thereby initiating our capital recycling and growth strategies as we head into 2026. We expect this strategy to modestly be accretive for 2026 while yielding stronger core FFO growth throughout the 2027 to 2030 period. Capital recycling to generate growth is our primary external objective. Selling mature assets with limited potential into newer, nicer, and higher growth assets within our familiar market geographies.
Transforming the portfolio and unlocking gains for tax-efficient capital recycling and high conviction assets to grow NOI at an outsized rate that is consistent with the company's historic execution. We expect to continue scouring the market for the best opportunities but we will absolutely prioritize stock buybacks as well in the low thirties over the near term. To summarize and reiterate a couple points. On the macro outlook, we see the market signaling a steeper recovery ahead. On operations, revenue is moderating, but at a decelerating pace. And we continue to demonstrate strong expense control driven by R&M, labor, and insurance.
We have stabilized bad debt, view the financial health of our tenant demographic as quite strong and resilient to market pressures. We have full conviction we can hit our same store guidance expectations and we are positioned for improved performance heading into 2026. On the balance sheet, we're cognizant of the swap maturity overhang on our earnings forecast and we continue to monitor that daily for opportunities. We expect to act in replacing the swap booked over the near term uncertainty before any expiration. And on our path to growth, we see green light ahead as it relates to our capital recycling strategy. Good deals are available. We are confident in our ability to underwrite, capitalize, and execute on them.
Our team will be heavily focused on doing just that heading into 2026, as well as, again, importantly, buying back stock in the low thirties. In closing, in the near term, we will continue to prioritize the balanced approach. Driving occupancy, maintaining rent strategies, managing controllable expenses, to support steady NOI growth, while we look to accelerate our capital recycling strategy and portfolio transformation to drive external growth as conditions on the field are set to improve. Looking ahead, we are confident in the long-term fundamentals of our Sunbelt position workforce housing assets, which we see to be well-positioned to outperform other geographies given our favorable trends in population migration, job creation, and wage growth.
That's all I have for prepared remarks. I appreciate our team's work here at NexPoint Residential Trust, Inc. and BH for continuing to execute. And that concludes our prepared remarks. So at this time, I'll turn it back over to the operator and open up the call for questions.
Operator: At this time, if you would like to ask a question, please press 1 on your telephone keypad. Your first question comes from the line of Omotayo Okusanya with Deutsche Bank. You may go ahead.
Omotayo Okusanya: Hi. Good morning, everyone. On the operating expense side, again, things look like they're going really well. Could you just talk a little bit about whether that is going to be sustainable on a going forward basis? And I just ask that in the context of full year guidance where the midpoint of guidance suggests that FFO in the fourth quarter is $0.61 versus your current $0.70 run rate, which is being helped by better than expected expense control.
Matthew Ryan McGraner: Yeah. I think there's a couple categories tied to that. You know, we think that we'll have continued improvement in sustainability on the non-controllable side with insurance. We also feel good about the real estate tax protests that are going on and see potential upside in that number. On the payroll and R&M side, you know, we don't see anything changing materially and expect that to be consistent as well. What it implies for core, you know, I think we're cautiously optimistic that we'll exceed expectations as usual. And then that's, you know, we're doing everything we can to beat on the expense side in the face of these supply pressures. Bonner, do you have anything to add to that?
Bonner McDermett: Yeah. I would just add, I think on the real estate taxes, we saw a benefit in Q3. So that's not necessarily the run rate for taxes there, but it does, you know, if you'll remember Nashville is on a four-year revaluation cycle. So, you know, we fight this battle every four years that occurred last year. We've been litigating those. Got on a couple of the other deals, but we don't expect to see any dramatic shift there. So seen in the past, the quarter was more one-time in nature, but I agree with Matt, you know, particularly on payroll. Yeah. We made the strategic initiatives to centralize a lot of the operations.
So most of that activity on the P&L hit kind of April 1 and then going forward.
Omotayo Okusanya: Can you quantify that one-time benefit in March? How much that was?
Bonner McDermett: Yeah. The total there was about $808,120.
Omotayo Okusanya: Oh, okay. That's helpful. Then my second question is again, you know, your self-disclosed NAV, again, you guys whether you're at the low end or the high end, depending on the cap rate you're using, the stock has been persistently trading at kind of a huge discount to NAV. And I guess when you guys looked at that over a long-term period, you know, if that gap is not necessarily made up over time, how do you kind of think about what next for NXRT and how you try to create shareholder value if you just kind of get assigned a perpetual large discount to NAV?
Granted a lot of the sector is already trading that way, so this is not unique to you. But just curious how you're thinking about that.
Matthew Ryan McGraner: Yeah. Look, you know, we've been very clear since we became public in 2015 that we view the company as a growth company. But also, you know, we have the company set up to transact as well. You know, with floating rate debt. Our goal is to hit $170 million of NOI by 2027. It's that simple. And, you know, the terminal value, at least in our mind, will always be there. We think that the portfolio is hard to replace and scale. You know, we think we have the best exposure to the highest job growth markets and, you know, we believe that if the discount isn't closed, then we'll close it.
You know, we own 16.5% of the company. We're highly aligned to do so. And, you know, what we absolutely know is that even in a muted transaction environment, there's still a bid for multifamily. The transaction market is still kind of a five cap market, especially for assets like ours. So while the public markets are discounting multifamily stocks, we think that will change dramatically in 2026. As new lease pricing influx. I think that's going to be the catalyst of it. I see that happening in the second quarter probably of 2026, and I think our stock will start to perform into that bid of new lease growth.
But if it doesn't, you know, we're confident that there is a terminal value and a bid for the company. We know that for sure. So we'd like to continue to grow the earning stream and think we can. You know? But if not, there's a bid there.
Omotayo Okusanya: Sounds good. Thank you.
Operator: Your next question comes from the line of Buck Horne with Raymond James. You may go ahead.
Buck Horne: Hey. Good morning, guys. Thanks for the time. I apologize. Did you guys give out the splits on new lease rates, renewals, and the blend for the quarter?
Matthew Ryan McGraner: No. We did in a supplement, but we'll update it for you. The new leases for the quarter were down 4.06% or $58. Renewals were up 1.94% or $29, almost $30. That's a blended negative 44 basis points.
Buck Horne: Got it. Appreciate that.
Matthew Ryan McGraner: And then by the way, October is kind of trending the same way. New leases were down 3.78% or $54. Renewals were up about 70 basis points or $10. For a blended down 1%.
Buck Horne: Perfect. You already beat me to my next question. I appreciate that.
Matthew Ryan McGraner: Okay. Got it. Step ahead of you, man.
Buck Horne: I'm also a touch a little bit on the CapEx then, just kind of the maintenance CapEx. Both recurring, nonrecurring, I think it added to about $9 million in the quarter. Do you see that starting to taper off anytime soon? Or is that kind of the run rate that you expect the portfolio to be on for at least a few more quarters?
Matthew Ryan McGraner: Yeah. I mean, I think it's a little bit elevated and, you know, the reasons for that is because, you know, we haven't been able to recycle as much of the portfolio as we typically do. So there is, you know, there is a little bit more maintenance CapEx going into it. Bonner, do you have anything to add on that?
Bonner McDermett: Yeah. I'd also say, you know, that if you're referencing page 22, the CapEx is up, particularly in the third quarter. That's up, but it's also up on a smaller dollar improvement. You know, we're not doing the full enchilada premium upgrades, things like that. We're focused more on average, it was about $4,000 upgrades. So to some units, that, you know, we touched in the past or needed some help to be competitive or, you know, we're spending about $4,000. We're getting a $70 premium. So it's not quite the historical run rate spend on interiors, but we're still getting to that kind of 20% annual return.
You know, the large refinancing that we did with Freddie Mac, we got, you know, new property condition assessments. Those, you know, kind of dictated some larger nonrecurring CapEx spends. You know, milling and paving drive lanes, some siding repairs, some roofs. We're also doing some larger projects this year. I think we're more focused on streamlining that and going into next year. Those are more one-time in nature anyway. So should moderate.
Buck Horne: Perfect. That's great color. Appreciate that. And, again, congrats and great job on controlling the expenses in this environment. A lot of progress there. I think I want to go back to Omotayo's question about, you know, capital allocation and just thinking about the NAV discount. But I guess the question really is why go after a new asset in Vegas at this point when you could buy the existing portfolio probably at an equal or better, you know, kind of combined NOI yield and growth rate going forward? Just kind of what's the help us walk through the rationale why buy an asset right now when you can buy the existing portfolio?
Matthew Ryan McGraner: Yeah. I think I don't think they're mutually exclusive. I think we can do both. As I said, I think, you know, over the near term until we close on this deal, we're going to, you know, aggressively buy back stock given where the capital is. But our view also is, yeah, we do need to show some external growth in terms of capital recycling. We're not going to be net acquirers, so to speak. So we're not, you know, going to just go out and buy willy-nilly.
The difference with this deal is given the situation of the asset, it's basically going in almost a six cap that we believe we can drive to a seven and a half or an eight cap over the course of, you know, our three-year value-add campaign. And those opportunities really, you know, exist on a large scale. This is a very precision-based investment. And I don't think it cannibalizes anything we're doing on a stock buyback program. You know, our free cash book yield is still strong. And I meant what I said when we're trying to hit $170 million of NOI in 2027. By the end of that year. I think that's possible.
And if we do that and we apply the terminal cap rate, I think we'll all be very happy.
Buck Horne: Appreciate it. Thanks, guys. Good job.
Operator: This concludes today's question and answer session. I would now like to turn it back over to the management team for closing remarks.
Matthew Ryan McGraner: Thank you very much for everyone's participation today and look forward to speaking to you all live in December at NAREIT. Thanks again.
Operator: This concludes today's call. You may now disconnect.