Nick Joseph: Yes. Absolutely. I think a lot of the questions have just been really focused on January results and kind of the – maybe the diversion to trends that you guys are putting up versus peers and recognize it’s a competitive acquisition market. A lot of peers are very good in operations as well. So just trying to understand where that difference is coming from. But maybe the second question just on kind of capital allocation going forward. You’ve been doing some buybacks. What is the appetite going forward, just given where the stock trades relative to at least consensus NAV?
Terry Considine: Well, we have zero appetite to issue shares, if that’s your question. What we’ve done in paired trades is, if we’ve sold real estate –
Nick Joseph: On the buybacks –
Terry Considine: And reinvested where we have higher growth rates, when we look at the – where the stock trades, we see that as an opportunity. And it’s been about a 20% element of our investment policy over the last year or so.
Nick Joseph: Sorry, yes, the question was on more buybacks, not on issuing equity here.
Terry Considine: Well, as I said, we bought back 5% of our capital in the last year. And if pricing continues, we’ll continue to buy more. And when we look at the – this is part of a balanced program. We see that the real estate returns are that – equal to or greater than those of share buybacks.
Nick Joseph: Thank you.
Operator: Thank you, Mr. Joseph. The next question comes from the line of Chandni Luthra with Goldman Sachs. You may proceed.
Chandni Luthra: Thank you for taking my question, and congratulations on a very strong quarter. I’d like to go back to market trend growth a little bit. Look, I understand that guidance assumes no increase in market trends. But then, Terry, you did say that your view of inflation is that it will continue to linger. So in light of that, are we to then basically take away that guidance is conservative or the other end of that could be that things might fall off the cliff as the year progresses and therefore, market rent growth is not there, 0, because we all understand that you’ve obviously started with such a strong generally. So why not give a view of market rent growth in the slides?
Terry Considine: Chandni, it’s because we’re giving guidance for the year. And at a time when the Chairman of the Fed is trying to figure out what to think about the future, I think it would be foolhardy for me or AIR as a team to give specifics about what’s going to happen going forward. So there is a conservative bias in what we do. It’s based on what we know today. That’s likely to change. In our remarks, we talked about what would happen if it changed in a positive way. And what would happen if it changed in a negative way. And we know that on this call are people that are far more expert about the macro economy than a group of apartment operators. And so you can overlay your macro objectives and see what they would choose.
After my own unworthy opinion that I think it’s going to be harder to get inflation under control. And if that’s the case, the likely outcomes are going to be higher rent growth, but also higher interest rates. Now we’re not too exposed on an operating basis to higher interest rates, thanks to Paul. But going back to Nick’s question, that may show up in net asset values and property pricing. So those are all dynamic factors that could unfold in the year ahead. But for the moment, we think a very reliable basis to say that we don’t – we think you can probably rely on it not being worse than it is today and that there’s some upside in those numbers.
