- Management highlighted multiple macroeconomic headwinds—interest rates, tariffs, inflation, government benefit reductions, and excess capacity—that are collectively pressuring demand and occupancy levels.
- The company expects these headwinds to persist into the second half of 2025, leading to a conservative outlook with occupancy levels remaining pressured and no seasonal inventory build forecasted.
- Despite challenging demand, the company is actively pursuing alternative growth opportunities, including retail and QSR expansion, especially in underserved international markets like Asia Pacific, to offset demand declines.
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- The quarter was initially rattled by escalating trade tensions and geopolitical risks, causing market declines.
- A pause on tariffs and policy clarity helped restore investor confidence, leading to a risk-on rally.
- Despite broader market gains, the firm's asset classes underperformed equities and fixed income, reflecting strategic positioning.
- The firm emphasizes the importance of diversification and valuation discipline during volatile periods.
- Market environment remains dynamic, with ongoing geopolitical developments influencing asset allocation decisions.
- Apartment demand in Q2 2025 was among the best in 25 years, supported by 31 months of wage growth exceeding rent growth.
- High homeownership costs continue to support apartment demand and reduce move-outs to buy homes.
- Resident retention reached its highest customer sentiment score ever at 91.6, reflecting strong satisfaction and service quality.
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