The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Bradley Barrett Heffern - RBC Capital Markets, Research Division - Analyst
: Yes. On the new lease number in October, Bhairav, it sounded like you said that, that's a relatively normal number for October. Is that correct? And
I guess just any color as to whether you're seeing any additional pressure versus what you would normally see on lease rates?
Question: Bradley Barrett Heffern - RBC Capital Markets, Research Division - Analyst
: Okay. Got it. And then on supply, not something that you typically have to deal with, but that's obviously been the theme this quarter. So what are
the markets where you're seeing elevated supply? I think you just gave a couple? And then what are your expectations for supply in 2024?
Yes, that's a great question. It certainly is a big theme. One of the hallmarks of our portfolio is our markets are more insulated from supply. They're
smaller, but that also means that they're more susceptible to supply. So some place like Billings, which is a small market, has very little supply, but
it has impacted it slightly there. I'd say our most supply affected markets are Denver and Minneapolis. We feel good about our position in those
markets.
Our rents are still at a level below new -- brand new products to keep us a little bit insulated, but we are feeling pressure there. With respect to
2024, I think like most of the industry, we're really expecting supply to moderate. And in fact, unlikely to see a lot of new products coming on or
starting lease-up in 2024, but we may have some product that has taken longer to lease that falls into 2024. We expect the effect of supply to be
much muted in 2024.
Question: Bradley Barrett Heffern - RBC Capital Markets, Research Division - Analyst
: Just a couple of quick little things. Bhairav, can you give the loss to lease on the earn-in that you're expecting for 2024 currently?
Question: Bradley Barrett Heffern - RBC Capital Markets, Research Division - Analyst
: Got it. And then on the expense picture for '24, I think you said no relief expected on insurance, not expecting you to give guidance, but would
you expect to relief overall on expenses next year? Or should we expect them to remain elevated?
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