Daniel Tricarico: Any way you could quantify the impact from replacing those non-paying tenants?
Bryan Smith: It’s difficult to quantify that because I don’t know the exact speed of the court system and some of the regulatory — the backlog and some of the procedural challenges make it difficult for me to predict that for the balance of the year.
Daniel Tricarico: And Dave, just quickly, where you pay cap rates today? You’ve been asked spread on the MLS one-off. And maybe what markets have you been the most efficient in selling these homes?
David Singelyn: Well, the market today, as I indicated, it’s in the low 5s on average. There are some markets that may not even be to a 5 in the MLS. As I indicated in the prepared remarks and I think earlier, we were largely on the sideline, I mean on the MLS, we’re entirely on the sideline as of right now. Where do you see opportunities, there are such sharp shooting opportunities? They’re not necessarily a market trend item. They’re just unique opportunities. And they’re throughout, but they’re not necessary — they’re not in volume, let’s make sure that we clarify that they’re not in volume.
Operator: Our next question comes from Austin Wurschmidt with KeyBanc Capital Markets. Please proceed with your question.
Austin Wurschmidt: Great. Thank you. So, based on the 6% loss to lease you have and the implied lease rate growth for the back half of the year, should you finish the year with roughly a 3% loss to lease in a 2024 earn-in that’s roughly around the same level or maybe even a little bit better. Am I thinking about that correctly?
Bryan Smith: Yes, Austin, this is Bryan. I think you are in terms of the loss to lease prediction, we have to wait and see on that a little bit. But in terms of the earn-in commentary, I think you’re right on.
Austin Wurschmidt: Thanks. And then just separately, I’m just — the dispositions year-to-date have exceeded the high end of that $200 million to $300 million disposition target you previously spoke about. What’s the appetite to continue selling either build capacity if those — more attractive acquisition opportunities materialize or just in order to prefund the funding needs for 2024?
Chris Lau: Yes. Good question, Chris here. Just in terms of this year’s activity, you’re exactly right. Same as last quarter. We’re continuing to see great traction through the disposition program, which again, is really just driven by the sheer scarcity of housing across the country. Meaning that our disposition supply continue to be met with really strong buyer demand when we bring it to market, which has enabled us — enabled us to achieve sales prices that are at or near asking prices and average disposition cap rates in the low to mid-3s that, as you pointed out, creates a really attractive capital recycling opportunity back into our growth programs. With that said, look, every single home that we are selling is being identified through our rigorous asset management program in process.
And yes, we are recycling the capital, but these are discrete decisions being made based on operational and asset management decisions. And as we think about the back part of this year, look, I think that we’re still going to see activity. But generally speaking, transaction volumes in the market commonly seasonally moderates in the back part of the year. So, we could see our disposition volumes moderate in the back half of this year as well. There’s a chance we could do a touch better than this. But on a full year basis, we could see this year’s disposition proceeds settling in and call the $350 million to $400 million range.
Operator: Our next question is from Jade Rahmani with KBW. Please proceed with your question.
Jason Sabshon: Hi. This is Jason Sabshon on for Jade. Congrats on a nice quarter and for entering into the joint venture with JPMorgan. On that note, do you have a target for JV equity capital under management? And how much do you plan to emphasize growing the asset management platform moving forward?
