Same-Store Revenue Guidance
Q: What affects high and low ends of revenue guidance?
A: Higher new lease rates due to strong demand could push us to the high end, while lower new lease rates might result in the low end. We assume blended rent growth of 1% for the full year, with renewals at 4.5% to 5% and new leases at around negative 3% to 3.25%.

Lease Rate Growth Timing
Q: When will lease rate growth turn positive?
A: We expect new lease pricing likely won't turn positive until 2025. It may get close to flat in the middle of this year but typically turns negative in the back half. Improvement should start to appear in 2025 as supply pressures moderate.

Impact of Supply on Rent
Q: What's the outlook for rents in weakest markets?
A: In markets like Austin, which face high supply, rent growth may struggle through 2024 and improve in 2025 as supply is absorbed. Strong job growth in these markets helps mitigate the impact.

Acquisition Plans and Leverage
Q: How high can leverage go for acquisitions?
A: We're comfortable increasing leverage up to 4.5% to 5%, translating to a total buying power of roughly $1.5 billion for acquisitions if the right opportunities arise.

Renewal vs New Rent Rates
Q: Why is there an 8% spread between renewal and new rents?
A: The gap, with renewals at 5% and new lease rates down 3%, is slightly wider than historical norms but consistent with seasonal patterns. Tenants value the cost and convenience of staying, and our customer service contributes to higher renewal rates. We expect the gap to narrow as new lease rates improve.

Demand and Job Growth Assumptions
Q: What's driving demand in guidance?
A: Steady job growth, with an assumption of about 400,000 new jobs in our markets for 2024, along with migration trends and limited single-family home affordability, support demand. Early indications show job growth holding up well.

Expense Pressures
Q: Which expenses are under pressure?
A: Uncontrollable expenses like real estate taxes are projected to grow 4.8%, and insurance is expected to increase by 15-16%. Controllable expenses are moderating, with repair and maintenance being the biggest driver among them.

Potential for Share Buybacks
Q: Will you consider share buybacks?
A: While we focus on acquisitions and investment opportunities that support earnings growth and dividends, we have a buyback program authorized and wouldn't hesitate to use it if conditions warrant, especially if there's significant dislocation between public and private pricing.

Development Starts and Yields
Q: What are expected yields on development starts?
A: We plan to start 3 to 4 developments this year, targeting stabilized yields in the mid-6% range. We're working to reduce construction costs and have seen 5-6% reductions on some projects, supporting our yield goals.

January Effect on Rents
Q: Why did rents recover in January?
A: Post-holiday season, leasing traffic typically picks up as people are more willing to move. Additionally, developer lease-up aggressiveness eased after year-end, contributing to improved rental rates in January.