Jeff Spector: Great. Thank you.
Operator: Our next question comes from the line of Eric Wolfe from Citi Canada. Go ahead, please.
Eric Wolfe: Hey. Good morning. As part of your guidance, it looks like you’re expecting the second half of the year to step up the $0.68 of quarterly core FFO versus $0.64 in the first half. I was just wondering if you could talk about what’s driving that increase in the back half of the year.
Christopher Marr: It’s pretty natural trend line for us historically in our sector overall that the back half tends to step up from the front half, just naturally with the weighting of revenue increases throughout the summer rental season. So not a surprise and pretty consistent with past trends that the back half has more earnings than the front half.
Eric Wolfe: Okay. And then if I think about sort of, yes, I mean, to your point, I mean, you normally see like a nice step-up in sort of realized rent per occupied foot in the third quarter versus second quarter. So I was just sort of curious based on what you’re seeing thus far in terms of street rates, do you think you’ll see that sort of normal step-up in the third quarter, I guess I’m effectively just trying to understand what you need to see from a street rates and ECRI perspective to get to that normal increase that you see in the third quarter?
Christopher Marr: I think we certainly would expect to see an increase in our ability to push on rates to new customers as you get into the summer rental season. The range to which we’re able to do that is going to be dependent on all the things that we’ve been talking about on the call thus far, which is the underpinning the range in our overall same-store revenue guide is going to be to what extent are we able to get closer to a more normal seasonality on one end of the guidance. And on the other end of the guidance, if we have a repeat of what we saw last year, that kind of defines the other side of it. So the answer is really consistent with our overall same-store revenue guide. It’s just going to depend on all the things that we see here over the next couple of months.
Eric Wolfe: All right. And then maybe just one other one. If you look at the scraping data, which maybe isn’t accurate, but it looks like the public REITs have sort of lower pricing than non-REITs. I guess is there any concern that you’re sort of creating a little bit of a race to bottom in terms of the street rates? And I guess, thinking long-term about how you’ll evaluate the strategy of maybe having lower street rates at the beginning and a bit more aggressive ECRIs versus the more traditional approach? How will you evaluate whether this strategy is working or not?
Timothy Martin: Yes. I think from our perspective and all of the data that we are accessing and have been looking at over the past several years. As I mentioned, you’re seeing that sequential improvement in the year-over-year gap in rates. We’re seeing rates from the competition that we have within the trade ring of our stores. Moving up seasonally as you would expect, and we’re seeing more constructive pricing. In regards to individual strategies, again, the objective to our revenue maximization system is to produce the highest revenue that we can from each individual customer over their lifetime with us, and we’ll continue to fine-tune the models and continue to look at different ways to achieve that, but that’s ultimately the objective.
I think you’re comment about the non-REIT operators. The reality is the gap in number of customers in balance sheet capacity and the ability to execute on things as I described in terms of automated look-alike targeting and being able to deliver a more relevant and personal experience across omni-channels. It’s just things that the larger companies can do that are very difficult for the smaller ones to replicate and therefore, you’re always going to have that big operational gap between the REITs and the other competitors in the marketplace.
Eric Wolfe: That’s helpful. Thank you.
Operator: Our next question comes from the line of Ki Bin Kim from Truist securities. Go ahead please.
Ki Bin Kim: Thank you. Good morning. Chris, when you look at the move-in rent trends from the beginning of the year until now, how does that compare to – I know it’s difficult to say what normal is, but a normal seasonal pattern?
Christopher Marr: Yes. Again, I think everything is a little bit more muted than what you would expect as to however we want to define normal, which goes to my comments at the beginning of the call around just the volatility in the customer, the volatility in the data, the volatility in the macroeconomic backdrop.
Ki Bin Kim: And typically, your realized rents would increase in 2Q versus you makes sense. But given some of the volatility and some weakness in pricing, do you think in 2Q sequential rents realized can increase?
Christopher Marr: Yes. I think – again, I think that is possible. As we sit here at the end of April, we’ve got a lot of information we’re going to get over the next couple of months that will be, as I said, very instructive as to how the year plays out.
Ki Bin Kim: Thanks. If I could squeeze a third one here. You’re obviously doing well for you guys, but it did slightly decel from last quarter and two quarters ago. Just wondering if you can provide any color on how we should think about this going forward?
Christopher Marr: I’m sorry, Ki Bin, at the very beginning there, the connection sort of zapped a little bit, so I didn’t hear the first part of your question.
Ki Bin Kim: I said your New York City market is obviously doing well for you guys, but it has shown some deceleration over the past couple of quarters. So I was wondering if you can provide any color on just how we should think about this moving forward in New York City.
Christopher Marr: Yes. I mean the New York market in total and New York City boroughs specifically, we continue to expect we’ll be the leader of our portfolio in terms of those metrics around growth, how they progress is going to be highly impactful by what the next couple of months look like. But I think the trends that we’re seeing in New York are very positive to us, but some of the same pressures you’re seeing in North Jersey as it relates to supply. Those continue to be there, Westchester and Long Island also have a little bit of supply. So the boroughs continue to do quite well and are leading overall in the MSA, the Westchester, Long Island and North Jersey suburbs will bounce around here a little bit as we feel what the impact of supply.
