2025 Rent Growth Outlook
Q: How will supply impact market rent growth in 2025?
A: Supply peaked in mid-2022 and is moderating by about 20% in 2025 compared to 2024. " We expect normal seasonality and stronger new lease pricing next year, particularly as demand picks up in the spring. "

Market Performance: Austin and Atlanta
Q: How are high-supply markets like Austin affecting lease rates?
A: Austin and Atlanta face elevated supply pressures, impacting new lease rates. " Excluding Austin, our Q3 new lease pricing would have been up 10 basis points from Q2. " We anticipate improvement in these markets as supply moderates next year. "

Leverage and Capital Allocation
Q: Will you use leverage to grow and reach target metrics?
A: We're leaning into debt financing due to our current cost of equity. " As conditions change, we may shift towards equity, but for now, we're utilizing our balance sheet capacity to pursue growth opportunities. "

Acquisition Strategy
Q: What are you looking for in acquisition opportunities?
A: We're focusing on brand-new properties just finishing construction, often entering initial lease-up. " Our ability to close all cash provides a competitive edge, enabling us to achieve compelling returns with stabilized NOI yields around 5.9%. "

Development Pipeline Expansion
Q: How large could your development pipeline grow near term?
A: We're aiming to build our pipeline to $1 billion to $1.2 billion, starting 3 to 4 projects a year over a three-year period. " With strong operating fundamentals expected in 2026 and 2027, it's an ideal time to ramp up. "

Absorption Trends and Demand
Q: Do you expect elevated absorption levels to continue?
A: Yes, in Q3 we absorbed more units than were delivered for the first time since Q1 2022. " Demand remains strong due to job growth, household formation, and low turnover, and we expect this to hold up in 2025. "

Occupancy and Rent Strategy
Q: How are occupancy trends affecting your revenue strategy?
A: Occupancy increased to 95.4% in Q3 due to strong absorption. " We balance pricing and occupancy at the market level, aiming for stable occupancy while pushing pricing where possible. "

Concessions Impact on Lease Rates
Q: How are concessions affecting new lease rates?
A: Concessions in Q3 were consistent with Q2, typically half a month to a month in stabilized submarkets. " In high-supply areas like Austin and Atlanta, concessions can be up to three months. "

Bad Debt Levels Normalizing
Q: Are you back to pre-COVID bad debt levels?
A: Yes, we're currently at about 40 basis points net delinquency, similar to pre-COVID levels of 30 to 40 basis points. "

Other Income Opportunities
Q: Will other income sources like Wi-Fi impact revenue growth?
A: Yes, we're rolling out property-wide Wi-Fi at four properties, expected to add $1 million when fully deployed. " We plan to expand to 20 to 25 properties in 2025, providing additional revenue. "

Hurricane and Storm Costs
Q: Will you include larger storm-related expenses in your guidance?
A: We'll include some assumed storm costs in our 2025 guidance but not at the levels experienced this year. " Historically, such costs have totaled around $9 to $10 million. "

Return to Office Impact
Q: Have return-to-office mandates affected urban leasing patterns?
A: We haven't seen any material changes in traffic or leasing patterns in urban locations due to return-to-office policies. "

Immigration as a Demand Factor
Q: Is immigration a key variable in demand trends?
A: Immigration trends have less impact on our markets and resident profile. " Our residents have average incomes over $80,000, and we're not significantly influenced by changes in immigration. "

Leasing Spreads and Earn-In
Q: With new lease spreads down, can we expect positive spreads by spring?
A: We anticipate better new lease performance in 2025 than in 2024. " Our earn-in is slightly negative, around 20 to 30 basis points, but we expect improvements as supply moderates. "

Acquisitions: Lease-Up Properties
Q: Will you continue acquiring properties in lease-up?
A: Yes, we'll continue focusing on acquiring brand-new properties in their initial lease-up. " Our ability to execute all-cash transactions allows us to achieve higher returns during this phase. "

Occupancy vs. Rent Growth
Q: When does incremental occupancy become less valuable than rent growth?
A: We aim for a balance, maintaining occupancy around 95.4% while pushing pricing where market conditions allow. " We focus on exposure levels and adjust strategies at the property level. "