Wesley Golladay: Hey, good morning, everyone. Last year, you had about just under $200 million of nonrecurring CapEx, how are you thinking about the spend for this year and is there anything in there that would drive down expenses maybe in 2023 or 2024?
Albert Campbell: Wes, this is Al. I’ll start and frame the capital. I mean overall, we’re spending — all the programs to get her probably around $300 million in recurring and enhancing together probably $180 million. And so that’s about$1,800 a unit, probably $1,000 recurring a little more and the rest being rent-enhancing. We continue our programs in redevelopment program, which includes our smart grant. So we’ll do those interior programs that’s another $97 million and we’ll continue our property repositioning program with Tim talks about taking properties and increasing their revenue potential of another $20 million or so. So overall, it’s about $300 million. I mean certainly, there’s some There’s certainly some things in the revenue has we think whether there’ll be some ESG investments or some things like that, that will have some potential for the future.
We’re also seeing some inflationary pressures in that as well. And then a large portion of that fee is just investment for the future in some of those programs, repositioning program, redevelopment and smart rents. So that’s kind of how we think about that.
Wesley Golladay: Okay. And then I guess as we maybe fast forward for the next few years, does this ever start to ramp down or do you have just a big pipeline of when the smart rent is done, you just move on to something else? How should we think about a multiyear view on this?
Tim Argo: Yes. Wes, this is Tim. I mean, in total, I think it comes down a little bit. The Smart Brent installation is a fairly significant piece of that. we expect to finish that capital project this year. I think you’ll see that come down. But I would expect both on the unit interior redevelopment program and the broader sort of amenity-based property repositioning program that we expect to continue those at similar levels.
Wesley Golladay: Okay. And then did you comment on the exposure right now? I might have missed it?
Tim Argo: Exposure right now sit at about 7.5%, which is in line with what it was last year and kind of what we would typically expect this time of the year. .
Wesley Golladay: Okay. Thanks a lot, everyone.
Operator: We’ll take our next question from Rob Stevenson with Janney. Please go ahead.
Robert Stevenson: Good morning, guys. Brad, what are the markets represented by the four to six development starts over the next year plus? And given Tim’s comments on R&M pressures, what are you seeing in terms of construction cost pressures going forward for new starts?
Brad Hill: Yes, Rob. So for the four starts that we feel we’re in good shape on for this year. We’ve got one in Charlotte, we’ve got one in Denver, we’ve got one in Orlando and one in Atlanta. I think I had those in my prepared comments. So those are projects we’ve been working on for a while and plans are in process on those. So we feel pretty good about those. In addition to those projects, we own a number of sites and we’ve got some in Denver, another phase in Orlando. Second phase in the Raleigh market. So a number of those projects that would add up to that six over the next 18 months or so. But for this year, the 4 are the ones that I mentioned in my comments. In terms of construction costs, what we’re seeing right now is that costs are not escalating like they were in 2022.
