That is still what we are expecting. What you’ve seen is rental revenue trend exactly the way we had thought it would. In the first quarter was about 1.6% and in April, it’s about 3%. We would expect to see it increase a little bit as we enter Q2 and Q3. So again, not materially different from a revenue perspective. On the expense side, there’s a couple of things that are driving the change. And we mentioned real estate taxes, that’s a onetime thing in the first quarter. And again, utilities costs, which, again, is related to the Minot venture. So as we think about the rest of the year, our projections are materially different from what we had said last time, and revenue is trending exactly the way we had thought, including occupancy, which is trending in the right direction.
Rob Stevenson: Okay.
Anne Olson: [Indiscernible] go ahead.
Rob Stevenson: No, go ahead Anne.
Anne Olson: Go ahead.
Rob Stevenson: No, no, go ahead, Anne.
Anne Olson: I was just going to say, the corresponding offset to that revenue is actually greater on the expense savings side. So overall, even though we’re being feels conservative on the revenue, that decline and what we’re projecting for total revenue, I mean, it’s actually going to drop to the bottom line in a positive manner in NOI.
Rob Stevenson: Okay. That’s helpful. And then can you talk a little bit about the pricing environment for the types of assets and the markets and submarkets that you’re looking to potentially sell? Where was the sort of cap rate fall out on that $19 million of dispositions? And you guys — I know it’s not in guidance, but are you guys thinking about marketing more assets for sale and seeing if you can get your price hit this year, how are you thinking about sort of culling the portfolio over the remainder of ’24?
Anne Olson: Yes. This is Anne. And then I’m going to ask Grant to comment specifically on pricing. But as we look at we certainly do have assets that we believe could be good candidates for capital recycling. We need some pickup in transaction volume in the markets that we’d like to acquire. So if we found a great opportunity or if there was some good transactions that we thought we would have a good use of proceeds. We do have some assets in mind like our historical capital recycling, those are in markets where we think have lower growth. They’re older assets with high CapEx and/or low growth potential lower rents overall. So we do feel like we have a pipeline that we could use for capital recycling. We just need some acquisition activity and the right opportunity in order to implement that. With respect to the Minneapolis assets that we sold in pricing, I’ll let Grant answer.
Grant Campbell: Yes. The Minneapolis sale, those older vintage communities, cap rate there was low 6s. Regarding your question on current pricing landscape, one, there continues to be a bid-ask spread that exists in a lot of cases today on individual asset conversations that we’re having. Along with that, there is the continued disconnect between public market valuations and private market valuations based on the recent transaction data points that do exist. In Denver, current price talk today is 5% to 5.5%. We did see an incremental uptick approximately one month ago in valuation conviction in the private market, where buyers and sellers. We’re increasingly finding common ground at, call it, 5% to 5.25% for well-located communities. That was then followed by the recent run-up in the 10-year treasury, which has again brought real-time volatility to asset pricing and is leading to what I’ll call the latest installment of price discovery.
Rob Stevenson: Okay. And I guess the question that I asks or raises is, what is the financing environment? I mean you’ve got Fannie and Freddie and you’ve got some other stuff available the 2 apartments that aren’t available to other guys. But are you seeing the financing market flow reasonably? Is it still tight? Is it choppy with whether or not guys are using bank financing? And if they pulled back in your markets, how would you characterize the financing environment for somebody buying a $19 million worth of assets or the sort of BB- stuff.
Bhairav Patel: Rob, this is Bhairav. So from a financing perspective, we have kind of seen spreads hold steady. I mean, I think the volatility is really driven by the treasury market or the treasury rates. So from a financing perspective, we haven’t really seen a big change in terms of being able to finance some of these assets. Overall, I think despite the volatility, the spreads have held the banks are still willing to lend. The term loan environment is a little bit challenged. The pricing from a private placement perspective for someone like us is a little bit challenged in terms of spreads, but from a treasury or from an agency perspective, I think the financing is still available on assets that are cash flowing.
Rob Stevenson: Okay. That’s helpful. Thank you. Appreciate the time this morning guys.
Operator: Our next question comes from Connor Mitchell from Piper Sandler.
Connor Mitchell: Hey, good morning. Thanks for taking my question. Anne and Bhairav, you guys kind of answered this a little bit, but maybe going back to the RUBS and how that’s affecting you guys. Just maybe ask a different way. How much of the lighter winter benefited cost savings or lower revenue for you guys versus savings for the residents that you have implemented the RUBS?
Bhairav Patel: Connor, so from a full-year perspective, maybe the — if you look at our revenue guide, we kind of reduced it at the midpoint. Most of that reduction is driven by RUBS revenue that is expected to be lower as the expense was lower as well. So I would say about — at the beginning of the year, we expect about 50 basis points of year-over-year increase driven by RUBS, now it’s about 30 basis points. So that’s really driving the reduction in rental revenue projections or overall revenue projections.
Connor Mitchell: Okay. That’s helpful. And then maybe considering the acquisition market and the transaction market, that’s been discussed a couple of times. You guys mentioned that it’s a tough market right now. Is that primarily due to the spreads you’ve been discussing? Or are there — is there more competition from like some cash buyers or other competition or another component that’s causing this tough market at the moment?
