John Pawlowski: Thanks for the time. Paul, just given your comments on the transaction market, just curious, what do you think most reasonable assumption is for acquisition and disposition volume for Elm this year?
Paul McDermott: We don’t have any acquisitions or dispositions in our guidance this year, John. I mean, we are patiently looking at the market. I think if we try to use last year as a leading indicator, about 80% of the sellers were institutional that were really funding other parts of their business and in the buyer market, about 80% also were private equity buyers. We’re seeing more people come to the table. I mean, we were talking to a broker last week, just had a deal in one of the Texas markets that I mentioned and they had 40 tours in two weeks. So I think there is genuine interest in the space. There’s a lot of capital of the $250 billion to $300 billion on the sidelines, I think at least $100 million of that is institutional or it’s $100 billion is institutional capital waiting to come into the multifamily space.
As Steve said earlier, on the sales side, if something doesn’t fit strategically or it has outsized CapEx versus relative to other growth opportunities that we’re evaluating, we’ll certainly consider it. But right now, we’re still – since we’ve taken over operations and in some of those assets less than a year, I still think we have some upside through our operational enhancements that we’ve alluded to. So we won’t be putting product out there this year. I would say just an observation that we would have is right now, talking to brokers, there’s kind of a scarcity premium that sellers are seeing. We’re definitely seeing bid as compress since we talked at NAREIT in November. And I think really both sides are just waiting for the tenure to stabilize, so that you can move forward with some certainty of execution.
John Pawlowski: Okay, great. Thanks. Second question is more of a broader Atlanta market question about what’s going on with fraud and eviction – gets evicts rather. So, I know you can control what’s coming in the front door of your communities, but in my mind, there’s a decent chance this is just a rolling issue across the market in the next few years. So, Tiffany or Grant, have you ever – have you done any work in terms of how inflated just occupied households are in Atlanta right now? How do you guys wrap your arms around the risk of kind of a multiyear bleed and market level occupancy or rents, as these issues just take a lot longer to cure than just your individual property?
Grant Montgomery: I can start and then I’ll turn it over to Tiffany. I think at a high level, I would go back to the demand that we are seeing coming in the front door, which I think is an indicator of the depth of the market. And we are seeing a steady level of rent to incomes for our new residents coming in. So this is not to say that there isn’t an issue in the market, but I think at the price points that we’re currently leasing our apartments, there is depth at those price points with commensurate incomes to support a nice solid rent to income ratio that we’re comfortable with from a risk profile standpoint. And Tiffany, I don’t know if you have anything to add to that?
Tiffany Butcher: No, I mean, I think we talked earlier about the bad debt and all of the initiatives that we’re putting in place, including we’ve tightened our income standards. We have put in place new credit screening policies and procedures. So not only are we tightening our standards on the front end, but then we are also obviously working through the eviction process on the back end. So I think from a single property perspective, Grant gave you the market from a single property perspective through the course of 2024. We’re going to work through this as we obviously address those who are currently delinquent. And I think the impacts of what we have put in place will help ensure that all new residents coming in the door are able to meet our credit standards and will be high credit quality paying residents for the foreseeable future.
John Pawlowski: Okay. One last modeling housekeeping item, if I may. Tiffany, can you just give us some context of what drove the 2% sequential decline in revenue in the D.C., Maryland bucket in your same-store?
Tiffany Butcher: Sure. So I can talk just more broadly and then obviously we can also turn it over to Grant to talk about some of the market. But I would say from the D.C. and Maryland, it is indeed just same sort of trends that we have seen with new lease rates and concessions in a very targeted fashion, impacting just with new term – near term supply in certain specific submarket. So unlike Atlanta, where I think some of the supply is much more widespread, here in the D.C. market, it is much more targeted and it does impact. Grant, do you want to talk maybe a little bit about when some of the different supply has hit in the D.C. and Maryland market? And then I can speak a little more specifically about how that’s impacted our communities.
