But when you really go through the geography of where our portfolio is, such a big amount of that is in or around the Downtown area and we literally have one community that is impacted by all of that. So if — and if our portfolio were heavily oriented to Downtown either in Houston or Austin, it would be a much greater concern than what — than what I think it’s actually going to be. Obviously, all supply in the market matters, but it’s like throwing rocks in a pond at the margins, if it’s not near you, it raises the water level a little bit, but it’s not a huge issue unless it happens to be in the particular submarket where your assets are located.
Wes Golladay: Got it. And just to follow-up on that, was it going to be — do you think it accelerates next year or is it comparable down
Keith Oden: So
Wes Golladay: any early view on that?
Keith Oden: Yeah. On — for Houston starts, or excuse me, completions next year, we have it at 19,000 apartments completions and that’s sound about
Wes Golladay: Okay. Great.
Keith Oden: right.
Wes Golladay: Okay. Thanks for the time everyone.
Ric Campo: Sure.
Operator: Our next question comes from Joshua Dennerlein with Bank of America. Please go ahead.
Joshua Dennerlein: Yeah. Thanks everyone. Just wanted to touch base on — I appreciate the build from 2022 to 2023 FFO guidance at the midpoint. I just wanted to touch on that amortization of net below market leases from the Fund acquisition. Is that like something we have to factor into in 2023 or is it fully out now that we have kind of lapped 2022? Just trying to get a sense of how we should be modeling this going forward?
Alex Jessett: Yeah. It is fully out. There is absolutely nothing in 2023. So the variance that you are looking at is the $0.07 that we recognized in 2022 as compared to zero in 2023.
Joshua Dennerlein: Okay. Okay. Appreciate that, Alex. And then maybe touching base on the markets, Phoenix seems like it’s kind of some of my screens, it looks like maybe it’s a market that’s weakening. It was interesting to see your occupancy went up sequentially. Could you kind of just provide more color around what you are seeing on the ground and how many of your portfolio is positioned versus maybe some new supply and kind of how…
Keith Oden: We have got — we have completions in Phoenix for 2023 of 15,000 apartments, employment growth in Phoenix next year is about 26,000 jobs. So that’s a little bit out of equilibrium in terms of job growth to new deliveries. Although the new deliveries are actually — have actually come down pretty substantially from where they were in the previous year. So I think Phoenix is — we have it listed as an A- market and moderating. So I think that’s or excuse me, A- and stable, so that seems about right for the overall operating environment in Phoenix.
Joshua Dennerlein: Okay. Appreciate the time.
Operator: Our next question comes from John Kim with BMO Capital Markets. Please go ahead.
John Kim: Thank you. On your same-store revenue guidance this year, I appreciate the breakdown. But one component that seems to be missing is the renewal rate growth, especially since debt renewal versus new lease rate spread widened in the fourth quarter, and again, even more so in January. So I guess my question is what’s the good run rate for that renewal versus new lease spread and how is that factored into your guidance this year?
