Grant P. Campbell: Yes, we are talking to folks in other markets about this execution. Broadly speaking, it’s harder to make development underwriting pencil in this environment. We will continue to seek opportunities with this book of business that do make sense. We do view it as a complement to our other capital allocation strategies. These opportunities provide good returns and direct visibility on asset performance and potential future acquisition timeline via that purchase option that we referenced. This direct visibility is beneficial when we think about portfolio re-composition initiatives. So yes, we are having conversations in other geographies. It’s very hard to make these pencil in today’s environment, but we’ll continue to seek them.
Anne Olson: And John from a purely financial standpoint, we’d like to have a certain portion of our capital allocated into mezzanine funding. These are, difficult deals for us to get done at our size. And so you have seen us do them in Minneapolis because this is a place where we have very deep connection. Our headquarters are here, we have a large team and so we probably just see more opportunities here and have more relationships with developers that have longer standing, but it definitely doesn’t preclude Grant from spending a lot of time trying to find those deals in other target markets of ours.
John Kim: And you mentioned Minneapolis has the second highest net absorption or had the second highest net absorption last year, which I didn’t fully appreciate until you mentioned it. What’s driving that demand? I realize there’s a lot of supply in that market as well, but what is, what’s driving this?
Anne Olson: I mean, there’s probably a lot of answers to what’s driving it, but I’d say a couple of things and then, Grant can jump in here too, but really strong economy, low unemployment, we have a Minneapolis has a very good job base, lots of fortune 500 companies. So the market itself is a little bit more stable. So while we are seeing good, a good amount of supply here, we have the fundamentals to fill that space and drive absorption. I think we’ve also seen less single-family home starts than we have in the past. So there’s been a little bit of shift in permitting from, if you look at the total multi or — housing universe, we have less single family home communities and a shift into the apartment communities, which is driving some, lack of availability of single family home options. Grant, do you have…
Grant P. Campbell: Yes, I would echo Anne’s comments on incomes in this market, depending on how you cut it. We consistently rank top 10 in terms of income profile. That income relative to the affordability of renting apartments is very attractive, high presence of medtech, banking, finance, etcetera jobs are very prevalent in our market and then just to touch on the supply comment, the supply pipeline in Minneapolis has we have seen a taper over recent quarters. So currently, we are sitting at about 4.5% of existing stock under construction that is down from 6% here over the last couple of quarters. So a measured supply story that again has been tapering.
Operator: Our next question today is from the line of Robert Stevenson of Janney. Rob, your line is now open. Please go ahead.
Robert Stevenson: Can you talk about how much of the 3% to 5% same store revenue growth guidance for 2024 is from marking to market rents versus the continued uplift from some of the operational technology and other improvements that you’ve been instituting within the portfolio?
Bhairav Patel: Good morning, Rob. I’ll give you the components and then Anne may chime in on some of the other components. But overall, from at 4% at the midpoint, 3% is really what’s being driven by mark to market rents, About 0.5% is being driven by the RUBS rollout, which is now fully complete. So, we have about 80% build out in the RUBS. And then the remainder is being driven by some of the value-add initiatives. We obviously expect to invest about $25 million this year, but we invested over the course of the year. So the impact on revenue for the year is going to be about 0.5%.
Anne Olson: And on the technology front — go ahead, Rob.
Robert Stevenson: No, no. I was going to say that was very helpful. Thank you.
Anne Olson: Yes and just on the technology front, we did in 2023, I think we really saw some great strides on, you know, gaining efficiencies and making sure that we’re fully executing on the platform. That work is going to continue. But in our projections, we’re not projecting that it’s going to materially move anything. We do have a couple of initiatives that may provide some cushion and or outperformance for us, but we’re very early on in — very early on in some of those. So, I would say really we’re we feel stabilized on the platform that we implemented over the past 2 to 3 years and feel like we’re in good shape in using that.
