The company’s second-quarter performance reflects the ongoing impact of its strategic pivot, which includes the recent sale of 176 units in Denver for $30 million. Revenue dipped to $65.8 million, down from $68.5 million a year prior, largely due to the cumulative effect of liquidating 12 apartment communities over the past year. Despite the headline loss, the firm managed to maintain stability in its same-store portfolio, which saw a modest 0.3% increase in net operating income.

Management has adjusted its full-year outlook to account for further divestments, including the July sale of communities in Rapid City and Minneapolis for a combined $139.8 million. Consequently, the company now projects core funds from operations (FFO) to range between $4.58 and $4.68 per diluted share, a downward revision from previous guidance. The firm plans to utilize proceeds from these sales to reduce its reliance on credit lines and potentially issue special distributions to shareholders of up to $60 million.