Operator: Good afternoon, and welcome to the Apartment Investment and Management Company’s Second Quarter 2012 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note that today’s event is being recorded.
I’d now like to turn the conference call over to Miss Lisa Cohn, Executive Vice President and General Counsel. Please go ahead. Miss Cohn, you may begin the conference.
Lisa R. Cohn - EVP, General Counsel and Secretary: Good day, everyone and apologies for the delay in starting the call. During this conference call, the forward-looking statements we make are based on management's judgment, including projections related to 2012 results. These statements are subject to certain risks and uncertainties, a description of which may be found in our SEC filings. Actual results may differ materially from what may be discussed today.
Also, we will discuss certain non-GAAP financial measures, such as FFOs. These are defined and are reconciled to the most comparable GAAP measures in the supplemental information that is part of the full earnings release published on Aimco's website.
The participants on today's call will be Terry Considine, our Chairman and CEO, who will provide opening remarks; Keith Kimmel, Executive Vice President in charge of Property Operations; and Ernie Freedman, our CFO, who will review second quarter results and 2012 guidance. Also in the room today are John Bezzant, Executive Vice President, Transactions; Miles Cortez, EVP and Chief Administrative Officer; and Dan Matula, EVP of Redevelopment and Construction Services. We are available to answer questions at the conclusion of our prepared remarks.
I will now turn the call to Terry Considine. Terry?
Terry Considine - Chairman and CEO: Thank you, Lisa, and good afternoon to all of you on this call. Thank you for your interest in Aimco. Business is good. During the recently completed second quarter Aimco continued on plan. During the second quarter we earned FFO of $0.46 per share. That's up 10% year-over-year and we earned AFFO of $0.34 per share and that's up 17% year-over-year. The operating team led by Keith maintained high occupancy while increasing rents with new and renewal rents averaging 5% higher than rents on expiring leases.
With 12-month leases, the hard work of Keith and his team locked in today a revenue base supporting the growth we expect over the next year. Keith's team also excelled in cost discipline particularly in the area of labor utilization as you can see in the 8% year-over-year decline in payroll costs.
Importantly, we maintained a healthy level of capital investment and maintenance spending. Our properties are in good condition as you can see from the rising rents they command. Our portfolio gets better and better. The average revenue per unit was about $1,300 in the second quarter. This important measure of portfolio quality determined and paid by customers was up about 8% year-over-year. About one half due to rent growth and one half due to acquisition and redevelopment of higher rent properties funded by the sale of lower rated properties. Cash from the sale of lower rated properties was used to fund redevelopment activity and three property acquisitions.