BRT

• Ongoing simplification of the business started in 2021 by taking full ownership of a majority of properties.
• Improved balance sheet and disciplined capital allocation.
• No significant mortgage debt maturities until early 2026. Pulled back on acquisitions in the past year and invested disposition proceeds to repurchase $16.7 million of shares in 2023 and continuing in 2024.
• Focus on property operations to maximize portfolio performance.
• 2024 outlook includes challenges from new supply impacting rent growth, occupancy pressure, and inflationary headwinds.
• Prioritize stabilizing occupancy in 2024 with potential for more transaction activity later.
• Long-term, confident in Sunbelt region, will be aggressive in portfolio management for 2024, patient on asset growth for better growth in 2025-2026.

• 2024 outlook outlines challenges from new supply affecting rent growth, occupancy, and inflationary impact on margins.
• Prioritize stabilizing occupancy in 2024, with potential for transaction activity later.
• Long-term, expects better growth in 2025 and 2026 due to minimal permitting process in prior years.

No specific product segment financial performance details provided in the transcript.

• Overbuilding in some markets leading to fight for occupancy and pressure on rents.
• Cap rates in mid-5s, interest rates higher than cap rates causing negative leverage, making transactions difficult.
• Potential for oversupply in certain markets impacting absorption and lease-up periods.

Q: Michael Gorman asks about transaction environment, share repurchases, and Stono Oaks lease-up.

A: Transaction environment is quiet with low volume, share repurchases based on cash balances and cost of capital, Stono Oaks had a minor setback but is on track.

Q: Barry Oxford asks about cap rates for acquisitions, unconsolidated partners, and supply-demand.

A: Cap rates need to be neutral with interest rates for acquisitions to be interesting, unconsolidated partners' maturities around 2027-2029, supply in some markets will take time to absorb with net absorption expected but possibly extending into 2025.