Alexander Goldfarb: Thank you.
Operator: Our next question comes from the line of Jamie Feldman with Wells Fargo. Please proceed with your question.
James Feldman: Great, thank you. If we ran our numbers right, it looks like your new lease rate growth was flat or even slightly declined month-over-month from March to April. So I guess first question, is that correct? And secondly, if it is correct, we’re just wondering what drove the lower acceleration? And how do you expect that to trend into May?
Barb Pak: Hey Jamie, it’s Barb. Yes, that’s really driven by L.A. and Alameda between March and April. And once again, it’s delinquency-related challenges which is ultimately a benefit to our revenues because we get those units back and can lease into a rent-paying tenant. And — but if you pull out those two, we did see a sequential increase. So I think it was primarily just driven by L.A. Alameda.
James Feldman: Okay. And then Secondly, the acquisition in your JV in the quarter seemed like a great opportunity. You didn’t have to reassess your tax basis, you already had majority ownership. Can you just talk about the opportunities to continue doing deals like that? And then also just more broadly, I thought your comments on the transaction market were pretty interesting. I think you said 4.5% core cap rates. Can you just talk more about what’s going on in the transaction market in terms of buyer interest? I think a lot of your peers have said things have pretty much taken a pause. So curious what you’re seeing on the ground and your thoughts on putting capital to work?
Rylan Burns: Hi, Jamie, Rylan here. On the first point, we do have significant opportunities to continue to acquire from our joint venture partnerships. What we are going to do, however, is try to make the best capital allocation decision we can at any given point in time. So at the start of this year, this was a joint venture that was maturing, and we had the opportunity to purchase our partner’s interest and it made sense. It was accretive for our shareholders, and that’s why we decided to elect that route. So we have a pretty deep joint venture business that we can continue to look for opportunities, but we are not solely focused on one or the other. We’re trying to find the highest and best returning investments that we can find.
As it relates to the transaction market, I think what you’ve been hearing is generally correct. The volumes continue to be very low as they were all of last year approximately a fifth of the transaction volumes we saw in ’21 and ’22. What we’re seeing this year is there was an ample amount of capital looking to be put to work in particular, from our focus on the West Coast in multifamily. So there’s a bit of a scarcity premium for well-located suburban product that’s coming to market. And so you are seeing very competitive bidding pools for the few transactions that have made it to market. And our expectation is that, that is going to continue. So we’re tracking a couple of deals right now. We have very deep bidder pools, both levered and unlevered buyers and I think some of our public investors would be surprised at where these transaction cap rates are going to come out.
So more to come there.
James Feldman: Great. Thank you. Does that motivate you to sell more?
Rylan Burns: It’s certainly something we’re considering. Again, we are trying to grow the portfolio, but we need to be cautious about where we — where our highest and best use of capital can be. So we have both opportunities that we are evaluating.
James Feldman: Okay, all right. Thank you.
Operator: Our next question comes from the line of Josh Dennerlein with Bank of America. Please proceed with your question.
Joshua Dennerlein: Hey, everyone. I want to go back to your comments, Angela, about where you’re sending out May and June renewals. It sounded like mid to low 4s. If I recall correctly on the last call, 4Q, I think renewals, your guidance was assuming like a slowing to like market rent growth, like the 1.25%. Is this kind of what was expected in guidance? Or is that ahead of schedule? And just like how should we think about like the cadence for the rest of the year?
Angela Kleiman: Hey Josh, we are slightly ahead of schedule. And what we haven’t done is because we have not reforecasted, it’s a little too early to talk about the actual cadence. And — but I will say that we’re ahead of schedule everywhere else except for L.A. and Alameda. So I do want to caveat that. But the things are doing fine right now.
Joshua Dennerlein: Okay. And what’s your — could you remind us what your typical like negotiation spread is on those renewals, they come back to you, they’re signed before you send them out?
Angela Kleiman: Sure, sure. Yes, it could range anywhere from zero depending on market strength to, say, close to 100 basis points depending on what else is going on. It could be supply, it could be jobs environment, a whole host of things.
Joshua Dennerlein: Awesome. Thanks for the time.
Operator: Our next question comes from the line of Haendel St. Juste with Mizuho. Please proceed with your question.
Haendel St. Juste: Hey, good morning out there. A couple of quick ones for me. I guess, first of all, I’m curious, if there’s any remaining benefit to your renewal rates from the burn off of concessions? Or is that a tailwind that’s now behind us? Thanks.
Angela Kleiman: Hey, Haendel, there’s a little bit in May and then no more in June and July.
Haendel St. Juste: Okay. Thanks. And where is the overall loss and lease of the portfolio today? And maybe if you could break that down by region?
