Robin Haneland: Okay, thank you.
Operator: Thank you, John. [Operator Instructions]. Our next question comes from Wesley Golladay from Baird. Wes, your line is now open, please go ahead.
Wesley Golladay : Hey, yeah, good morning, everyone. I want to go back to that smart home technology roll that you’ve put into this year, how much of a lift testing for revenue was at this year? And would you expect a greater lift next year?
Anne Olson: So, this year, we started this year, so the increase on the revenue side has been relatively minor. Simply because we’re in the middle of the rollout. We think that that will continue into next year. There isn’t a large component. I think the premiums on those are about $40 to $60 a unit. So, not a massive lift on the revenue side, but we really do expect a lot expense savings in particularly into next year from some of this. Our return, our calculated ROI that we’re targeting on those is about 21.4%. So, great investment, it’s a combination of cost savings for us and revenue.
Wesley Golladay : Yeah, no, thanks for the return on that as well. Appreciate that. And then you did a lot of capital recycling off late. And just wondering when you look at the portfolio now see where pricing is, is there a chance to do more of that?
Anne Olson: I think so we’re really taking a keen eye to what in our portfolio is performing well, what markets and types of assets, we think have long term growth potential. And where we may do some trading out, the flip side of the coin on the dispositions is that there’s a real dearth of acquisition opportunities, particularly in markets that we like, there’s a lot of capital still waiting to be placed, even with high interest rates, and a lot of sellers who are holding. So, we do see the disposition side, we think we can still achieve really good pricing, given the amount of capital. With respect to the Minot sale we had four full portfolio, best and final offers, which we thought was a very strong bid pool for those assets in North Dakota.
So, we’re keeping a strong eye on it. And we’d like to be well positioned, really focusing on the balance sheet right now, so that we can take advantage of what opportunities come whether those be in the form of capital recycling, or new opportunities.
Wesley Golladay : Great, thanks for the time.
Operator: Thank you, Wes. We now have a follow-up question from Brad Heffern from RBC Capital Markets.
Brad Heffern: Hey, everybody, I’m back. Just a couple of quick little things. Bhairav, can you give the last lease in the earning that you’re expecting for 2024? Currently?
Bhairav Patel: Sure. The last lease, as it stands as of today is about 2.8%. The earning is about a 0.5. Now this has kind of declined, as you know, it’s a point in time number. So, this has declined over the summer months into today. And that’s a similar trend that we expected last year into this time as well.
Brad Heffern: Okay, got it. And then on the expense picture for ‘24. I think you said no relief expected on insurance, not expecting you to give guidance. But would you expect relief overall on expenses next year? Or should we expect them to remain elevated?
Anne Olson: Well, am I giving direction to you or to the people running my budgets here Brad? I think what we’re going to see and what we’re starting to see, as we have started to see some of the budgets come in for next year. I think we’re going to see some relief on taxes, those are going to stay relatively flat, I think our portfolio was very fully valued. And with the higher interest rates, we have good reason to believe that those will stay relatively flat, insurance, no relief, other in other places over the past couple of years, we’ve had a lot of pressure on wages and onsite compensation. I think we could see that moderate some back to normal levels, 3% to 4% there rather than the double digits we’ve seen in the past couple years.
