So that could allow well-capitalized companies like Camden to buck the trend and develop when merchant builders can’t and be able to position higher returns on developments than you would expect today in 2025 and 2026. So that’s how we think about it.
Michael Goldsmith: Thank you very much. Good luck this year.
Ric Campo: Thank you.
Operator: Our next question comes from Haendel St. Juste with Mizuho. Please go ahead.
Haendel St. Juste: Hey. Good morning out there. My first question is going back to the same-store revenue guide. Can you clarify for us the building blocks and how the math works? I am looking at your current midpoint of 5%, 5.1%, but also considering the earning, which I think was around 5% and the market rent growth assumption that you have in your supplemental of 3%. So assuming half of that gets us into the, call it, mid-6%s. So can you spend a moment to kind of clarifying the buildup to our sensor revenue and what are the swing factors to get to the upper and lower end? Thanks.
Alex Jessett: Yeah. Absolutely. So, first of all, you are right, the earn-in and we will call it the earn-in plus sort of the loss to lease that we think we can capture is about 5% and then we have market rent growth from December 31 of 2022 to December 31 of 2023 of about 3%. So, obviously, you can only get half of that. So to the 5%, you add the 1.5% and that gets you to 6.5% and that’s what we call net market rent. Then the driver is sort of the dilutive impact to that is economic occupancy. So we are making the assumption that occupancy comes down about 100 basis points. So you take the 6.5% and you back off the 100 basis points and that gets you to a 5.5% rental income growth. Now remember that rental income is only about 89% of our total property revenues.
So if you take that 5.5% rental income growth and you multiply it by 89%, you get to about 4.9% and then the other 11% of our rental revenues comes from other income and think about water rebilling, trash rebilling, admin fees, application fees, those type of items and they are so closely correlated to occupancy. And they are also — some of them are statutorily mandated to the amount that you can actually charge and so we are expecting that 11% to grow at about 1.5%. So if you multiply those two out, you get 0.2, you add the 0.2 you are 4.9 and you get exactly to 5.1%.
Haendel St. Juste: Got it. Got it. That’s helpful. Second question is on the $250 million of acquisitions and dispositions you outlined in your guide. I guess I am curious on how we should broadly be thinking about the timing in light of the sale transaction markets you outlined? Are you willing to wait for better cap rates or are you expecting better cap rates, getting calls from many — getting more calls for merchant builders or sensing an opportunity there and then any markets that you are outlining that you are adding more to or calling from? Thanks.
Alex Jessett: So I will answer the timing and then let Ric and Keith answer the second part of it. But the timing of what we have in our model is we have got it towards the end of the year and we have got them offsetting one another. So there’s no net accretion or dilution from acquisitions or dispositions in our 2023 guidance.
