Occupancy — Rentable Basis
72.0%
vs 64.9% budgeted — fifth straight month of gains
Occupancy — Total Building
56.4%
vs 64.8% budgeted — behind plan on an all-space basis
Occupancy Trend
+0.9 pts
Rentable-basis occupancy, July (71.1%) to August (72.0%)
August Revenue
$45,755
vs $63,883 budget | YTD $311,765 vs $368,794 (-15.5%)
August NOI
-$1,477
vs +$17,905 budget | YTD -$38,806 vs $19,275 budget
August Net Cash Flow
-$30,540
NOI less interest expense | vs -$12,304 budget
YTD Net Cash Flow
-$266,035
NOI less interest expense | vs -$215,003 budget
Manager Commentary
Pasadena Southmore's lease-up continued in August. Occupancy on the space currently in service rose to 72.0%, up from 71.1% in July — the fifth straight month of gains and ahead of the lease-up budget for that same basis. On a total-building basis, which counts space still being made rentable, occupancy is 56.4%, below the 64.8% budget for that measure as the make-ready program continues bringing unrentable units back into service. Monthly NOI improved to -$1,477 from -$7,447 in July, helped by revenue growth and the absence of the one-time repair charge that hit last month. Revenue and NOI remain below budget for the month as the property continues to price for velocity during lease-up. The team continues to track the stabilization timeline with the property manager and will update it in the Q3 2026 report.
Lease-Up Plan vs. Actual
| Measure | August Actual | August Budget | YTD Actual | YTD Budget | Status |
|---|
| Occupancy (rentable basis) | 72.0% | 64.9% | — | — | AHEAD |
| Occupancy (total building) | 56.4% | 64.8% | — | — | BEHIND |
| Revenue | $45,755 | $63,883 | $311,765 | $368,794 | BEHIND |
| Net Operating Income | -$1,477 | $17,905 | -$38,806 | $19,275 | BEHIND |
| Net Cash Flow (NOI less interest) | -$30,540 | -$12,304 | -$266,035 | -$215,003 | BEHIND |
As a lease-up asset, Pasadena is budgeted to run at a loss through stabilization; occupancy gains on the space currently in service are the leading indicator, and that trend is positive for a fifth straight month. NOI also improved meaningfully month over month. Revenue and NOI remain behind plan primarily on rate, consistent with a velocity-first pricing approach during lease-up. Full unit-level detail and the expense review are in the Q3 2026 investor report.