Robert Stevenson: Okay. That’s helpful. And then can you just give a quick review of your markets? I mean, other than Denver, there are not a lot of markets that you guys have that there’s other public peers in, so less data there. I mean, which of these markets are you expecting same store revenue growth to be above the 3% to 5% guidance for the company overall and which below? Can you just talk a little bit about that as to how we should be thinking about the markets individually?
Anne Olson: Yes, that’s a good question. One of the we are a good data provider on some of those markets. We’re the largest owner in a couple of them. As we look to 2024, I think we’re going to continue to see some outperformance in Omaha, Nebraska, North Dakota has been performing really well. And then I’d say Minneapolis and Denver kind of coming in the middle of the pack there. A place where we’re seeing some softness is what we call the other mountain west that’d be Rapid City and Billings. They had, if you recall, just a massive run up in rents in 2021 into 2022. We really started to see that cool last year and we are seeing that continue to cool off and believe that’ll hold through 2024. So I’d say Omaha at the top and then probably Billings, Rapid City at the bottom.
Robert Stevenson: Okay. And then just Rochester and St. Cloud, are they middle, bottom? How should we be thinking about those?
Anne Olson: Yes. I’d say they’re right in the middle. Rochester has had some supply, a little bit of supply there, nothing that has concerned us. And we have come off some great value add projects there that really raised our renter profile and our customer experience there. So I think that that’ll continue to perform well. And St. Cloud that portfolio as you know, we sold some of the assets out of that this year. So we feel really well positioned there to kind of be right on the average.
Robert Stevenson: Okay. That’s extremely helpful. And then, Bhairav, when you take a look, where was bad debt for you guys in 2023? And what do you have baked into the 2024 guidance?
Bhairav Patel: Sure. With respect to 2023, we were about 25 to 30 basis points, which we consider normalized pre COVID. And with respect to 2024, we are at the midpoint projecting about 35 basis points, so kind of sticking around what we experienced in 2023 as we haven’t really seen anything that makes us think otherwise.
Robert Stevenson: Okay. And then I guess a similar vein, what did you guys do this year or 2023 in terms of unit turnover? And are you expecting any real upticks or downticks in that given what you’re seeing today in terms of the renter profile?
Bhairav Patel: Sure. With respect to unit turnover, we had seen a lot of costs escalating at the end of 2022. So with respect to 2023, we were slightly down versus 2022. With respect to 2024, what we are seeing is material prices have kind of, I would say, normalized, in the sense that we can expect some inflationary increases there. And then labor though is running a little bit higher than we would like. So we would still expect a slight increase over 2023, but then 2023 itself was a reduction over 2022.
Anne Olson: And with respect to — we did see a little bit of an uptick during 2023 in resident retention. So just overall had fewer turns in 2023 to 2022. But our projections do include kind of our the standard that fit about 50% of the units will turn during the course of the year.
Robert Stevenson: And what — given material and labor costs these days, what does a turn typically cost you ex the downtime?
Bhairav Patel: I would say, roughly about the cost would be about 1,000 dollars of churn, thereabouts. Again, from a portfolio perspective, that can differ as you look at different markets, but roughly that’s what we kind of see on an average.
Robert Stevenson: Okay. That’s incredibly helpful.
Operator: Our next question today is from the line of Barry Oxford of Colliers. Barry, your line is open.
Barry Oxford: One thing I was looking at was same store expenses, being down in 4Q. What can I be looking for as it relates to same store expenses in 2024?
Bhairav Patel: Good morning, Barry. So with respect to 2024, there’s two major line items that will be driving our expenses in 2024. One is on-site compensation and as I said, the labor market is still pretty strong. We I mean, although we are in a much better place in 2023 compared to 2022, it’s still hard to fill some of those positions. So, we do expect that to run slightly above what you would consider normalized or inflationary. And then the other line item that is really driving up costs is insurance. Our premiums year-over-year increased by 25% to 30%. That’s two-thirds of the insurance line. So, those are the two major categories driving year over year expense growth.
Barry Oxford: Okay. Great. And then what was causing some of those numbers to be negative in some of those cities like Omaha in 4Q?
