Grant Montgomery: Sure. So in Washington D.C., we had by year end about 40% of our units were in submarkets where we were already past peak. And we’re going to get to about 70% that are past peak by mid-year in 2024. And as Tiffany said, I think in an earlier answer, we were roughly around 30% or so in Atlanta that were past that peak by year end. And similarly, we’ll be – 70% of our units will be past that peak by mid-year. And I think contextually, it is important to see that across our entire portfolio, our net inventory growth across our portfolio was about 2.5% in 2024 on average versus 2.3% in 2023, so really steady. And to put that in context, the Sunbelt as a whole in the markets that we’re looking at, that increase is going to be almost 5% in 2024. So I think contextualizing it is important and that’s obviously being strengthened by our Washington D.C. exposure, which has a much more subdued level of supply coming to market this year.
John Pawlowski: Great. Thank you for the time.
Operator: Thank you. [Operator Instructions] Our next question is coming from Michael Lewis with Truist Securities. Your line is live.
Michael Lewis: Great, thank you. Did you provide new lease spreads so far for January and February and especially maybe in Atlanta if you have that granularity?
Tiffany Butcher: So, what we have provided and as I mentioned earlier, our effective blended spreads are in the 2.5% to 3.5% range the D.C. Metro area and an effective blended in Atlanta is negative to low mid-single digits. And that’s a projection or anticipation for 2024 as a whole. But if you want to dive into just new lease rate growth, specifically, I would say year to date, we’ve seen a slight improvement in new lease rate growth across both of our markets, both D.C. and in Atlanta. But we don’t really expect to see a consistent month-to-month improvement for the Atlanta portfolio until probably sometime in the second half of the year. As I mentioned earlier, our Washington Metro portfolio is performing very well, showing the stability that we’d expect to see in our core market over the longer-term.
We would expect Washington Metro new lease rates to see consistent month-over-month improvement heading into the spring leasing season, moderating later in the year. For Atlanta, we are seeing more of an impact from both new supply and the timing of evictions as I mentioned earlier, as jurisdictions work through eviction backlog. So the impact of backfilling eviction related vacancy has created more near term impacts on rates and occupancies and we expect this to continue through the first half of the year with slight improvement in the second half as we move past peak supply. I think as I mentioned earlier, the bright spot is that both our D.C. and our Atlanta portfolios continue to benefit from very high retention and very strong renewal rates in our communities.
Michael Lewis: Okay, thanks. And then just one more for me, kind of bigger picture. You talked about markets and the acquisitions in Atlanta performance there. My question is about like your ability to scale, right? I think there could be maybe the Atlanta performance is an example of this, right? I think the company could probably benefit from scaling and diversifying. My question is really like how you do it, right, you have a balance on the line, you kind of led your comments where the equity price isn’t where you think it should be. Watergate is not going to be a good cost of capital whenever that comes. How do you think about that, right, do you agree like kind of – in the opportunity in scaling and diversifying? And then the real crux of the question is you need some help from the capital markets, I understand that, but kind of what’s the plan, how are you able to do it?
Steven Freishtat: Yes, Michael, I’ll start with that and I kind of mentioned it before, right, that the first part is, we do have assets in our current portfolio that could allow us to diversify, so we could recycle out of those into other markets, which would certainly be beneficial to further diversify. But we’ve got a lot of levers embedded in our portfolio right now. We talk about the $4 million in a quarter to $4.75 million of operational upside that we’re executing on and already accomplished 20% in 2023 and looking to do another 40% or so here in 2024. We’re rolling out our phase two of our smart home technology which we think provide a lot of upside there as well. We’ve got our renovation pipeline, 3300 units in 2023 that we got mid-teens returns that we’re looking at being able to continue to do that here in 2024.
