Financial Data and Key Metrics Changes - Core FFO per share for Q4 2025 was $0.32, and for the full year, it was $1.17, aligning with guidance [8] - Same-store NOI grew by 1.8% in Q4 and 2.4% for the full year, driven by a 2% increase in same-store revenue [8][10] - Average effective monthly rents increased by 60 basis points in Q4 and 80 basis points for the full year [10][12] Business Line Data and Key Metrics Changes - The company renovated 2,003 units in 2025, achieving an average unlevered return on investment of 15.3% [5] - In 2026, the company expects to renovate between 2,000 and 2,500 units, with six new communities added to the Value-Add Program [6][19] Market Data and Key Metrics Changes - Job growth in the company's markets is forecasted to average 60 basis points, double the national average of 30 basis points [7] - The company generates nearly 70% of its NOI from communities in seven of the ten highest in-migration states [7] Company Strategy and Development Direction - The company plans to focus on operational stability and efficiency to maximize revenue growth while maintaining a well-maintained environment for residents [22] - Capital allocation will prioritize investments in the value-add program, with expectations of improved market fundamentals in 2026 [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, citing improving market fundamentals and strong demand driven by job and population growth [22] - The company anticipates same-store NOI increases of 80 basis points at the midpoint for 2026, with a focus on maintaining low operating costs [17][19] Other Important Information - The company sold a 356-unit community for $50 million and entered a new joint venture in Indianapolis for a 318-unit community [12] - The company repurchased 1.9 million shares at an average price of $16 per share, taking advantage of market dislocation [5][13] Q&A Session Summary Question: How does the new lease rate growth assumption incorporate market rent growth? - Management indicated that new lease growth starts negative in January but improves throughout the year, with first-half growth down about 2.25% and second-half growth up roughly 75 basis points [25] Question: Can you discuss the performance of non-same-store properties? - Management noted that non-same-store properties are performing in line with expectations, but two development deals are behind schedule due to higher concessions [27] Question: What impact do concessions have on rent growth projections? - Management expects lower concessions in the second half of the year, which should improve rental rate growth, particularly for renewals [33] Question: Can you comment on the performance of specific markets? - Management highlighted strong performance in markets like Atlanta and Nashville, while Memphis is expected to face challenges due to slower macro growth [40] Question: What is the strategy regarding fixed and floating rate debt? - Management plans to maintain a balance between fixed and floating rate debt, with a preference for floating rates in the current environment [88]