Operator: Our final question is from Keegan Carl with Wolfe Research. Please proceed.
Keegan Carl: Yes thanks for the time guys. So one of your peers, given what they’ve recently done with hires, I think it’s clear that your build-to-rent platform is validated. Just kind of curious, I know you touched a little bit earlier on returns, but just can you guide what the returns look like on the homes that have been delivered over the last several years and how they’ve been trending relative to your expectations? And then how much additional yield you typically would get on developments versus what you’d buy in the MLS on a stabilized basis?
David Singelyn: Well, this is Dave. Let me take the second part, and that is the difference in yields. And while I think that’s important and it is significantly different, as I said today, we’re seeing acquisition opportunities in the 4s and having very difficult time finding any opportunities there that meet any of the buy opportunity. Our development program is approaching the 6s. So you’ve got 100 basis points plus between the 2, and we have seen it historically. But I think the benefit of the development program, in my mind, is much greater than just that one piece. It is the locations of the properties that we are building. It is the quality of the properties that we’re building because we don’t build them like a national homebuilder because we are going to own it long-term.
It’s not a criticism of the homebuilders. It’s a different objective long-term. So we’re building with higher-quality materials. It’s all about the durability of the assets. And so I like — I think the development program has significant benefits. It is how you execute the development program that is very important. It has to be a program that you control the design and the execution and the site selection in the process. And so I don’t necessarily comment on others, but I do believe it is a very successful program. I believe that it’s been acknowledged a number of times. We saw a number of years ago people attempting to get into build to rent as a standalone without having an operating platform, and you really need the synergies of the two to make it successful.
So I think other people acknowledge the quality and the benefits of a development program.
Keegan Carl: And then big picture, we’re heading into an election year, and I think it’s fair to assume that SFR is going to have some noise around it. I’m just curious, can you walk us through how you work with local governments to communicate value proposition of SFR and then how your development platform differentiates you?
David Singelyn: Yes. I’d say it’s a true ground game on the government affairs. And we are the — I think maybe the only one. I’m not 100% sure of that. But we have a dedicated team that’s experienced in government affairs. And it’s all about education and talking about the benefits of single-family rentals, the desire that the tenants have. There is misconceptions that are being put forth by various politicians. And at the local level is where all the decisions are made. So it’s truly, truly a ground game. And we can talk about a lot of different instances, but it’s having a team to get in there, give you the ability to get your permits. And at the end of the day, what we are doing is we are building more housing in this country.
And isn’t that where the real problem is in affordability, etcetera? It’s in the fact that we don’t have enough high-quality housing and we have this housing shortage. So if we can solve the housing shortage and we can get the building permits that are necessary to provide the housing, I think a lot of the concerns that are being talked about resolve themselves. But they won’t resolve themselves unless we provide adequate housing.
Operator: We have reached the end of our question-and-answer session. I would like to turn the call over to management for closing comments.
David Singelyn: Yes. Thank you, operator. And to all of you, thank you for your time today. We will talk to you again, I guess, next year on our next earnings call. So have a good day. Have a good weekend.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
