Oct 27, 2026 earnings call — Build-to-rent pilot and DreamFinders financing
Raised year-end AFFO outlook to $0.82 to $0.84 per share for fiscal 2026.
Revenue $0.2B (est $0.2B) · EPS $0.78 (est $0.77)
Key quotes
"Specifically, we are working on a product designed to sit between the for sale and for-rent markets as a bridge to homeownership."
"In a compressed time frame, our team underwrote, documented, and closed the acquisition of a geographically diverse portfolio of approximately 7 thousand homesites, More than half of those homesites are finished lots, and the portfolio has a weighted average life of approximately 2.5 years."
"Accordingly, going forward, while our shares trade below book value, we intend to distribute 90% of our earnings consistent with maintaining a REIT status and directing the remaining 10% towards share repurchases."
Analyst Q&A 5
rental pilot pause and returns
Q (Julien Blouin · Goldman Sachs): He asked about the rental program pause, how you will prove returns, and whether you must wait until homes sell to judge returns. He also asked about leverage and use of proceeds to pay down debt.
A: Management said the pilot was always a crawl-walk-run approach to observe rents, asset management and customer feedback. They said rental rates are pacing above underwriting and that the program was not a rent-to-own pilot; they will use proceeds to pay down debt and may scale up opportunistically while managing credit and ratings.
"This was really about buying scattered site observing the rental rates observing the asset management, and getting feedback from the customer and the returns." — Darren L. Richman (CEO)
will you buy more homes; timeline to evaluate
Q (Eric Wolfe · Citi): He asked whether you plan to buy more homes now above the $330 million SFR pilot, and how long it will take to evaluate if the business meets expectations (rent pace, NOI growth, sale prices).
A: Management said they believe in the program outcome but will observe and evaluate before adding new contracting. They noted the $330 million is the initial SFR pilot and that increases could come from the BTR community contract; they also emphasized the pilot is immaterial to total assets and was never meant to pivot the business.
"This initial pilot, it is the 330 million basis of the SFR you mentioned." — Robert Nitkin (COO)
dividend policy and guidance drivers
Q (Craig Kucera · B. Riley): He asked whether you will reset the dividend to a 90% AFFO payout or if 90% refers to REIT taxable income, and how taxable income compares to AFFO. He also asked about market conditions and Q4 guidance drivers.
A: Management said they will preserve optionality and are not cutting the dividend; excess growth beyond the current dividend will be used opportunistically for share repurchases or dividend but they are not giving a fixed payout target. They also said most Q4 guidance growth comes from the DreamFinders-Beazer deal and that friction from rental assets is already baked into guidance.
"I think, really, what we are saying, Craig, is that are gonna preserve the optionality." — Darren L. Richman (CEO)
SFR cap rate and time to stabilize NOI
Q (Ryan Gilbert · BTIG): He asked whether the 5% going-in cap rate refers to in-place NOI given many properties were acquired vacant, and when you expect to reach the underwritten stabilized NOI.
A: Management clarified the yield is an as-rented yield based on projected initial rents and they project roughly 6 months to get the portfolio rented. They said the maximum carrying friction is included in fourth-quarter guidance and they will evaluate leasing pace and cost of capital as inputs to future decisions.
"And projecting, you know, roughly 6 months until we get that portfolio rented." — Robert Nitkin (COO)
percent rented and rent levels
Q (Eric Wolfe · Citi): He asked what percent of the initial portfolio (over 1,200 homes) have been rented so far and how current rental rates compare with what you underwrote.
A: Management said about 10% of the initial portfolio was rented as of yesterday and leasing is scaling. They said rents are pacing about 10% above their underwriting and noted the average purchase price including capitalized costs was $280 thousand per home.
"I think there is been about 10% of the of it rented." — Darren L. Richman (CEO)