Jim Sebra: Yes, we have — for our 2024 a guide, we’re assuming roughly about a 4.25% increase in real estate taxes. The markets that are continual kind of LT issues, but continual kind of increases. The Texas markets of Dallas and Austin continue to be obviously, through their reassessment process annually as well as we’re expecting a little bit of additional pressure from some of the West markets like Columbus and Indy.
John Pawlowski: All right, thank you for the time.
Operator: And we will take our next question from Mason Guell with Baird.
Mason Guell: Hey, good morning, everyone. On the G&A and property management expenses guide, can you speak to what is driving the 5% year-over-year core increase, given fewer assets in your portfolio?
Jim Sebra: Sure. I mean, I think it’s just inflationary pressure on payroll for all the teams, both on-site, obviously in property as well as the corporate teams. Just a higher basis. In terms of the 5%, obviously the guide is roughly, I think almost a 7.5% increase. But as I mentioned on my prepared remarks, there’s about $1.5 million of onetime benefits in 2023 that when you exclude that, brings it back down to roughly 5% inflationary rate.
Mason Guell: Okay. And on your two developments in Denver, what are the expectations for the initial yields and the stabilized yields on these assets?
Jim Sebra: So the Arista deal that’s coming, as just Scott CO’d in the fourth quarter, and it’s in leased-up and about 45% leased today. The expectation is that that portfolio — or that asset sorry, will deliver a stabilized yield at 7%. The Flatirons deal that’s coming out of the ground or up — is under construction today. It’s already out of the ground, that will be stabilizing at roughly a 6% yield.
Operator: And we will take our final question from Linda Tsai with Jefferies.
Linda Tsai: Hi. The new leases in first quarter, I know that’s through February 12, what’s the breakdown between new leases in January, I guess where you expect February to end up and then March?
Jim Sebra: The new leases in January and February are very close to that kind of negative 2.2%. Some of it are a bit different, but I’ll just confirm that and come back to you. And in March, I know, Janice, if you want to kind of comment, but I think March, we expect the trend to kind of continue.
Janice Richards: Yeah, I would not see a difference between February and March with the trend.
Linda Tsai: Got it. And then the dilution from asset sales to de-lever is within your range, but at the high end, was that related to timing?
Jim Sebra: Not so much timing, it’s just that it was — our range was $0.02 to $0.03. So that was $0.025 at the midpoint, and the actual number is $0.027. So it’s just rounding to three.
Linda Tsai: Okay. And then in terms of the buyers the assets that you’re selling to? Just curious, what are the buyers’ source of funding?
Mike Daley: Most of them are using Fannie and or Freddie Financing, but also a number of them are assuming the debt that we had in place. I think there was 11031 transaction in the group as well.
Linda Tsai: Thank you. And then just on the technology that’s helping you reduce fraud, how quickly can that impact fraud going forward?
Jim Sebra: We’ve been — I’ll ask Janice or Mike to comment. But we’ve been we’ve been piloting the technology since October, and we’ve already seen a really good benefit where it’s kind of pointing out IDs that are clearly fraudulent and they’re not even when — since we do it at tour, those folks don’t even get a chance to tour the units. And really it helps our teams save time as well as prevents the opportunity for the — submitting an application. Mike? Janice?
Mike Daley: I think we’ve absolutely seen a track with communities where we’ve had more of an issue historically with fraud. We’ve definitely seen a higher rate of alerts in terms ID of potential fraud. So we have seen the impact really hit us where we were where we needed it the most. But it has been very effective from our perspective, and we also believe, although you can’t quantify it, but it is also in these markets, sometimes you get fraud rings and folks who coordinate these activities, you build a reputation for these stringent ID checks, and you avoid some that never even come in. So it’s been very beneficial, and we expect that to continue.
Linda Tsai: Does your bad debt expectation include the benefit of this technology?
Mike Daley: Yes.
Linda Tsai: Thank you.
Operator: And we have no further questions at this time. So I will now turn the call back to Mr. Scott Schaeffer for closing remarks.
Scott Schaeffer: And thank you all for joining us this morning, and we’ll speak to you again next quarter.
Operator: And ladies and gentlemen, this concludes today’s conference call, and we thank you for your participation. You may now disconnect.
