Alex Jessett: Yeah. Absolutely. So net bad debt for us for 2023 should be right around 1.4%. When you think about rental assistance, so in 2022, on a same-store basis, we got about $11.5 million of rental assistance, and in 2023, we are assuming some but really negligible amounts. So the best way to sort of think about it is that, on a net basis, there’s not much of a change in terms of bad debt from 2022 to 2023. But if you sort of back out the positive benefits of rental assistance that we got in 2023 then we are showing, excuse me, in 2022, then we are showing some improvement in 2023.
Ric Campo: And ultimately, our bad debt is about 0.5%.
Austin Wurschmidt: Okay. That’s helpful.
Ric Campo: And that’s the challenge we have today, it’s very elevated and given the outlook for a potential recession, we are hoping that 1.4% will start going down throughout the year and then, ultimately, go back to 50 basis points number in 2024. So there’s some positive growth that can come from people actually starting to pay their rent.
Austin Wurschmidt: Yeah. Got it. Understood. And then it seemed like Houston had started to see some momentum last year sort of bucking maybe the trend of some of your other markets, given it didn’t have as difficult comps, but it is remaining at the lower end of your revenue growth expectations and market outlook. And I guess I am just curious what’s really holding back Houston from stacking up better versus other markets and is there a potential for a surprise to the upside as you move through the year?
Keith Oden: Yeah. So we have — in our forecast, we have used 15,000 completions in Houston, which the normal year in Houston that would be seen as a positive to the overall market conditions given the size of the Houston market. Interestingly enough and Ron Witten’s number numbers, he actually has Houston job growth is basically flat or I mean zero and flat total employment over the year. And after — it’s one of those things where we don’t necessarily agree with Ron on everything and I think it’s very possible that he’s got the — that he has the job growth outlook he’s understated it in Houston. The Greater Houston partnership came out with numbers after Ron’s latest update that indicated Houston could be as high as 60,000 or 70,000 new jobs in 2023.
That’s quite a range between zero and 70,000. So I think when we look at our modeling and he carries that over into his rental forecast, we probably tweaked Ron’s rental forecast in Houston to reflect a little bit more dynamic situation on job growth in Houston. So I think there is a chance if the energy business continues as it is right now, which is basically almost every energy company in the country in the fourth quarter reported record earnings. If that trend continues, I just can’t imagine that we are not going to see a more robust job growth situation in.
Ric Campo: Yeah. I think the other thing that could help Houston a lot is the, when you think about the federal government spending, even though we have lots of supply coming on the supply is getting shut off. We know that’s happening right now given the current financial environment. And we have a tremendous amount of — in Houston of federal money that’s coming here, be it via hydrogen, carbon capture, expansion of the port and just a lot of big government projects that are going to create a lot of employment over the next 12 months to 36 months with the massive amounts of spending from the Infrastructure Bill and The Inflation Reduction Act and that Houston should benefit big time from both of those.
Austin Wurschmidt: That’s helpful. Thanks for all the detail.
Operator: Our next question comes from Michael Goldsmith with UBS. Please go ahead.
Michael Goldsmith: Good morning. Thanks a lot for taking my question.
Ric Campo: Sure.
