Steve Sakwa: Okay. And just a quick follow-up on the development. Dave, could you just remind us where the development yields are sitting for, I guess, the second half 2023 deliveries? And then what are your expectations maybe for deliveries in 2024?
David Singelyn: Yes. Thank you. Let me just start with where we are in the second quarter is where we expected to be. And as we go throughout the balance of the year. I’m not sure that we, at this point, get all the way to a six by the end of the year, but we are making great progress. What I do know is that the product that we are delivering is well-located, high-quality, durable asset. It’s in locations next to where homebuilders are building for sale. And so it’s the assets that are in the infill positions that you just can’t buy on the MLS or national builder. But today, we see a lot of progress between now and the end of the year.
Operator: Next question comes from Haendel St. Juste with Mizuho. Please proceed with your question.
Haendel St. Juste: Hey, good morning.
David Singelyn: Hey morning Haendel.
Haendel St. Juste: First question is on the expense guide. You guys highlighted turnover was up quite a bit in the second quarter, but you guys didn’t raise the OpEx side. So, can you talk a bit about what’s keeping that OpEx guide intact. It doesn’t sound like there’s any anticipated benefit from the recent change with Texas tax loss. So, curious kind of what are some of the offsets there? And what are your expectations for turnover in the back half of the year?
Chris Lau: Yes. Sure, Haendel. It’s Chris here. Look, I think it’d probably be helpful just to unpack the pieces of the expense guide, which again remain unchanged from the start of the year. Let’s take up property taxes, which obviously, I talked a lot about in the prepared remarks. Recall that our expected range on a full year basis, there is, call it, 8% to 10%. And then the remainder of the expense guide is about 10% to 11% on everything else with the various pieces being insurance increasing in the 20s. We talked about that in past quarters. That’s what we’re seeing play through. On a full year basis, we’re expecting property management and call it, the 10% to 12% area. As a reminder, that reflects the general inflationary environment comparison against some of the modest understaffing we saw at the beginning of last year and then the investments that we’ve been making into our Resident 360 program this year.
And then it’s really inflationary-like increases on R&M and turn and HOAs in, call it, the 7% to 8% area on a full year basis. And as we think about kind of the glide path for the year, we’d expect R&M and turn to probably tick up a touch in the third quarter as we’re experiencing a slightly higher level of seasonal move-outs and then trend into our full year range in that, call it, 7% to 8% area, blend all of that together and it gets you to our midpoint of 9.75%.
Haendel St. Juste: That’s great color, Chris. Appreciate that. Maybe just a bit more on one specific line item, insurance cost, certainly there continues to be a headwind. I know it’s not a huge component of OpEx, but can you talk a bit more of what you’re seeing there? And how much of your self-insurance today versus historically. And how do you potentially balance the cost savings potentially there versus potential catastrophic risk? Thanks.
