And so that was €“ we ended the year a little higher than we expected in 2022. And I think as we move in 2023, we don’t expect significant reprising key areas. Our €“ we got a pretty €“ we have a pretty good beat on what’s revaluing this year, it’s primarily Texas and part of Atlanta, parts of Georgia, there’s primarily Atlanta, and so given what’s revaluing and our expectations for millage rates, and we have a few of our cases from 2022 that we’re litigating that are spilling over into 2023. And so we’ve got an estimate of what we think we’ll win on that. We may be wrong, but we’ve got an estimate on that, included in that. So all that together gets us that that 6.25% range. And a lot of unknown in that right now, as we talked about, but we think where we stand, that’s a very good estimate.
Michael Goldsmith: Got it. And sticking with you, Al. NOI growth has been strong, but property values haven’t had the same magnitude of increase due to the rise in cap rate. So does that leave more opportunity for successful appeals maybe in ’24 and beyond? Thanks.
Albert Campbell: Yeah, I think what we’d say is ’23 is a year just that they’re still looking back at very strong revenue. It’s kind of backward-looking game, looking at the beginning of this year. Still looking at strong revenues for 2022 and a pretty stable cap rate environment has changed, but it’s still fairly stable. So that’s driving it. I do think your point, I think, is a very good point. As we move into 2024 that they’re looking back in a more normalized year, we would expect some moderation in taxes, primarily in Texas, Georgia, and Florida. We’re seeing that in most pressure because there €“ it’s going to be driven by a normalized top line to your point. So we would agree with that comment.
Michael Goldsmith: Thank you very much. Good luck in €˜23
Operator: We’ll take our next question from John Pawlowski with Green Street. Please go ahead.
John Pawlowski: Hey, thanks for keeping the call going. Al, maybe just a few quick follow-ups on the property tax conversation. Could you just give me a rough sense what percentage of the portfolio you already have a high degree of visibility for the increases this year?
Albert Campbell: Man, it’s €“ what we have a high degree of visibility is pretty low other than we have a good beat on what we think the values are. Obviously, we know given the current cap rate environment is what they are. . And John, I mean, 70% to 75% of our tax exposure is from Texas, Florida and Georgia. So it’s really going to come down to the millage rates. It’s going to turn down to what municipalities need? What are they going to €“we expect to have continued strong valuations and probably millage rates rolling back again. Where that all ends up? It’s hard to have precise visibility at this point. I mean I think we have consultants that help us. We have a lot of market knowledge. So it’s based on €“ our estimates based on Texas Georgia and Florida, the key drivers of our expense.
