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Significant Transactions During the Nine Months Ended September 30, 2026 and Subsequent Events
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Significant Transactions During the Nine Months Ended September 30, 2026 and Subsequent Events Significant Transactions During the Nine Months Ended September 30, 2026 and Subsequent Events
Significant Transactions

Disposition of Real Estate Interests

The table below summarizes disposition activity for the nine months ended September 30, 2026 ($ in millions):

Property NameLocationDateApartment HomesSale Price at Pro Rata Share
Collins on PineWAAug-2676$30.0 
(1)
Marina City ClubCAAug-2610111.0 
(2)
Total dispositions177$41.0 

(1)    The Company recognized a $6.8 million gain on sale of real estate and land in the condensed consolidated statements of income and comprehensive income.
(2)     Concurrent with the disposition, the Company recorded a $10.7 million impairment loss in the condensed consolidated statements of income and comprehensive income to write down the property’s carrying value to its fair value.

Notes Receivable

In the second quarter of 2026, the Company received cash of $45.7 million from the repayment of a mezzanine loan for a property located in Northern California.
In February 2026, the Company funded a $59.5 million related party bridge loan to Wesco V, LLC (“Wesco V”), a co-investment, in connection with the payoff of a mortgage associated with one of Wesco V’s properties located in Northern California. The note receivable accrued interest at 5.0% and was scheduled to mature in September 2026. The loan was repaid in conjunction with the disposition of the property in June 2026. See Note 4, Co-investments, for additional information regarding the disposition.

Preferred Equity Investments

In the third quarter of 2026, the Company received cash of $15.6 million, for the full redemption of a preferred equity investment in a joint venture that holds a property located in California. See Note 4, Co-investments, for additional details.

In the third quarter of 2026, Wesco VII, LLC (“Wesco VII”), a joint venture in which the Company owns a 50.0% interest, funded preferred equity investments totaling $36.2 million in two stabilized apartment home communities located in California. The investments have an initial preferred return of 11.5% and a maturity date in July 2029.

In the second quarter of 2026, the Company received cash of $42.1 million, including an early redemption fee of $0.2 million, for the full redemption of two preferred equity investments, one of which involved a related party, in joint ventures that hold properties located in California. See Note 6, Related Party Transactions, for additional details.

Debt

In September 2026, the Company entered into a $275.0 million unsecured term loan priced at Secured Overnight Financing Rate (“SOFR”) plus 0.800%, which is based on a tiered rate structure tied to the Operating Partnership’s long-term unsecured credit ratings. The loan has a maturity date in September 2029, with two one-year extension options, exercisable at the Company’s discretion. The Company may elect to increase this facility by up to an additional $225.0 million, to an aggregate size of $500.0 million, provided that one or more banks (from the lenders or as otherwise permitted) voluntarily agree to provide the additional commitment.

Common Stock

In September 2026, the Company settled all of its forward sale agreements under the 2024 ATM Program by issuing 52,600 shares of common stock at a weighted average forward price of $311.13 per share, after commissions, which was inclusive of adjustments made to reflect the then-current overnight federal funds rate and the amount of dividends paid to holders of the Company’s common stock over the term of the forward sale agreements, for net proceeds of $16.4 million. As of September 30, 2026, $883.5 million of shares remained available to be sold under the 2024 ATM Program.

In May 2026, the Company’s Board of Directors approved a new stock repurchase plan, without an expiration date, to allow the Company to acquire common stock up to an aggregate value of $500.0 million. The plan supersedes the Company’s previous common stock repurchase plan announced in September 2022. During the nine months ended September 30, 2026, the Company repurchased and retired 254,001 shares of the Company’s common stock through the Company’s previous plan, and none through the Company’s current plan, totaling $61.9 million, including commissions, at an average price per share of $243.76. As a result, as of September 30, 2026, the Company had $500.0 million of purchase authority remaining under the Company’s current stock repurchase plan.

Subsequent Events

Subsequent to quarter end, the Company acquired a 378-unit apartment home community built in 2024 and located in Oakland, CA. This transaction follows the liquidation of the Company’s $64.2 million subordinated loan interest and payoff of the associated $92.3 million senior mortgage. The Company has not accrued income on this investment since the third quarter of 2025 and will consolidate the community on its financial statements in the fourth quarter of 2026.

Subsequent to quarter end, the Company acquired Lincoln Landing, a 474-unit apartment home community built in 2022 and located in Hayward, CA for a contract price of $205.3 million.