We were in the mid fives for both the first and second quarter and now we are in the high fives for the third quarter. So nice improvement there and we’re still on track moving into or towards the six percent area and that’s where I would expect we would start the year next year.
Operator: Our next question is from Haendel St. Juste with Mizuho. Please proceed.
Haendel St. Juste: Hey, good morning out there. So first question may be for Chris. I was hoping you could set some light on the increase in bad debt in the quarter, the drivers there, and when do you expect broadly to get back to the long-term average? Thanks.
Chris Lau: Yes, morning Haendel. Look, in general I would remind everyone that bad debt will naturally fluctuate over the course of the year, especially when we’re talking about the third quarter, which traditionally experiences slightly higher bad debt associated with seasonal move-outs. But overall, third quarter bad debt once again landed pretty consistent with what we were expecting, leaving our full year expectations unchanged in the low 1% area. And we’re in that area, as we’ve talked about a number of times, as we continue to still have a number of court systems across the country moving slower than normal, that’s holding bad debt modestly above our long-term run rate, which if everyone recalls is in called the 100 basis points or slightly below area.
Haendel St. Juste: Got it, got it, appreciate that. Dave, maybe working for you, just thinking more broadly on transaction as a portfolio, we know the MLS inventory is tight. I guess I’m more curious about the landscape opportunities to buy from mid-size private operators. I’m curious if you’re getting more inbound, any sense that they might be more inclined to cash in here? And then more broadly, what percent of the portfolio, maybe the legacy portfolio, do you think you’d be open to selling, maybe upgrading via some trades here? Thank you.
David Singelyn: Yes, so the acquisition market, just talk maybe about two pieces of it. The acquisition market on one offs, you’re 100% right. It is basically at a price point that for us is not acceptable and not tradable. We bought a total of eight homes in the third quarter. We underwrote between national home builders and all third-party opportunities over 22,000 homes. And we found eight that met our quality criteria as well as the economic criteria. With respect to acquisitions of portfolios, I wouldn’t say it’s picked up, but there are some that are being talked about and shopped. And the first thing that we look at is what is the quality of those assets? Where are those assets? What is the age of the assets? And what are the characteristics?
Are they detached homes? Are they three bedrooms or greater? And the portfolios for the most part that we are seeing either don’t meet those quality criteria, or, and this is true for both the portfolios as well as the one offs. The ones that we underwrote were typically in the high fours as a yield. And with very, very few in the fives, as I said, we only found eight that we could transact on that met our criteria.
Operator: Our next question is from Jamie Feldman with Wells Fargo. Please proceed.
James Feldman: Thank you for taking my question. So, this was the first quarter or even kind of the first last six weeks or so where you saw the multifamily companies, finally see some pain on supply. Sounds like, developers hitting, the tenure hitting 5% and developers panicking a little bit impacted business conditions. So I would think this would also be, the first time you might see some impact of either tenants staying, deciding to stay in multifamily for longer before moving to single family, or maybe using some of those types of properties as a pricing comp. Have you seen any change in business conditions since the tenure hit 5% or even as, there’s been more concern about consumer credit, credit card balances growing and some of the other, signs we’re seeing in the economy about the consumer over the last month or so?
