Joshua Dennerlein: Okay, appreciate that color. And then maybe just one quick one and apologies if I missed this. But what does your guide assume for the rest of the year as far as new lease rate growth goes?
Barb Pak: [Technical Difficulty] specific number that we need to achieve to hit the fourth quarter [Technical Difficulty] we got back a lot of units from non-paying tenants. It has had an impact to our occupancy, but there’s a trade-off there. So there’s a variety of factors that will play into the fourth quarter guidance, and there’s not a specific rent growth number that we need to achieve because there’s all the other factors play into it.
Joshua Dennerlein: Okay. Okay, thanks.
Operator: Our next question comes from Jamie Feldman with Wells Fargo. Please proceed with your question.
Jamie Feldman: Great. Thank you. Can you talk about for the occupancy first initiative in the first half. Do you think that sets you up for potential acceleration next year?
Jessica Anderson: Hi, Jamie, this is Jessica. Can you clarify your question, were you talking the first half of 2023? [indiscernible]
Jamie Feldman: Yeah. I’m just thinking about what the year-over-year comps could be into next year. Like, where did you push harder in the first half of ’23 that you may get the benefit. It might be harder to have the comps for the first half of ’24 both on occupancy by market and also by rents?
Jessica Anderson: Yes, I understand what you’re saying. Yeah, year-to-date, occupancy, I believe we’re sitting about 96.5% and right now we floated down to 95.9%, but again there is a trade out. So, it’s revenue neutral over the short term, but potentially positive as we head into 2024. So where we’re heading right now with occupancy, it’s hard to peg exactly where we’ll end the year. As I mentioned, we remain focused on occupancy and back selling units. It’s a seasonally slow period, so it’s uncertain how much progress we’ll be able to make with occupancy over the short term. So with that said, as we head into the year, we certainly could be lower than last year. But stable is what my expectation is from an occupancy perspective.
But there’s other components that will add to a favorable revenue outcome as we see our delinquency come down. And as far as occupancy, by area, I mean, generally speaking, we’re seeing our stronger occupancies in Orange County, San Diego, Ventura. Seattle is performing quite well now and having quite a stable seasonal slowdown, particularly when compared to last year, and it’s sitting around 96%. Los Angeles is 95.4% and I would expect that market to be particularly impacted with a lower occupancy, but again an upside on the delinquency front. And the Bay Area is also sitting around 96%. Does that answer your question?
Jamie Feldman: Yeah, that’s helpful. Thank you. And then, I guess, just switching gears, to the investment here to investment potential. I mean, you mentioned Oakland. I mean, some of these sub-markets, you saw better opportunities or better pricing?
Rylan Burns: Hey, Jamie. Rylan, here. I would say, we are open to any good investment opportunity subject to the conditions that are presented to us. At a high level, as we’ve talked about, we are relatively bullish on the prospects for Northern California on the next several years, and I think Angela has reiterated several of reasons for that case. Oakland will be challenged for the next year or two given the supply that went out there. So it would have to be a pretty compelling investment opportunity. But it’s — we are open and eagerly looking for opportunities in all of our core markets.
